ACCT 505 Midterm Exam 2

ACCT 505 Midterm Exam 2

Page One

1. (TCO A) The variable portion of advertising costs is a………….

2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be………

3. (TCO A) The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n):……………

4. (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following?

5. (TCO F) Which of the following statements is true? I. Overhead application may be made slowly as a job is worked on. II. Overhead application may be made in a single application at the time of completion of the job. III. Overhead application should be made to any job not completed at year end in order to properly value the work in process inventory.

6. (TCO F) Which of the following statements about the process-costing system is incorrect?

7. (TCO F) The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method………..

8. (TCO B) The contribution margin equals……..

9. (TCO B) Which of the following would not affect the break-even point?

10. (TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would……….

Page Two

1.(TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just-completed year…………..

2.(TCO F) The Illinois Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below………….

3.(TCO B) Drake Company’s income statement for the most recent year appears below…………

4.(TCO E) Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations:…………….