Ranger Roadsters Experienced the Following Costs in 2014 (Assume the Same

question 29

Multiple Choice

Ranger Roadsters experienced the following costs in 2014 (Assume the same unit costs in all years) : $\begin{array}{lr}\text { Direct materials }&\$ 4.85 \text { per unit }\\\text { Direct labor }&\$ 2.10 \text { per unit }\\\text { Manufacturing overhead costs }\\\text { Variable } & \$ 2.25 \text { per unit } \\\text { Fixed } & \$ 75,075\\\text { Selling \& administrative costs }\\\text { Variable selling } & \$ 0.95 \text { per unit } \\\text { Fixed selling } & \$ 8,000 \\\text { Fixed administrative } & \$ 2,000\end{array}$ There were 6,000 units in beginning inventory. During the year, the company manufactured 45,500 units and sold 48,000 units. If net income using variable costing was $82,500, how much is net income using full costing?

• A) $78,375
• B) $86,625
• C) $76,725
• D) $88,275

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