Ranger Productions Experienced the Following Costs in 2014 During 2014, the Company Manufactured 65,000 Units and Sold 62,000

question 53

Multiple Choice

Ranger Productions experienced the following costs in 2014: $$\begin{array} { l r } \text { Direct materials } & \$ 1.50 \text { per unit } \\\text { Direct labor } & \$ 2.60 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 1.20 \text { per unit } \\\text { Variable selling costs } & \$ 4.40 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 84,000 \\\text { Fixed selling costs } & \$ 32,000 \\\text { Fixed administrative costs } & \$ 15,000\end{array}$$ During 2014, the company manufactured 65,000 units and sold 62,000 units. The unit cost is the same throughout the year. Beginning inventory is zero. How much will the company report as total variable product costs on its 2014 contribution income statement?

• A) $328,600
• B) $601,400
• C) $344,500
• D) $630,500

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Definitions:

Electrical Jumper

A conductor used to close or bypass part of an electrical circuit or to connect two points together.

Line

In electrical contexts, "line" refers to a conductor or circuit that carries electric current from the power source to a load or from one part of a system to another.

Load Sides

Refers to connections or aspects of an electrical system that are downstream from the power supply and are responsible for drawing power.

Mechanical Overload

A condition where a machine or its components are subjected to forces beyond their design limits, potentially causing damage.