Ranger Productions Experienced the Following Costs in 2017 During 2017, the Company Manufactured 65,000 Units and Sold 62,000

question 43

Multiple Choice

Ranger Productions experienced the following costs in 2017: $\begin{array}{lr}\text { Direct materials } & \$ 1.50 \text { per unit } \\\text { Direct labor } & \$ 2.60 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 1.20 \text { per unit } \\\text { Variable selling costs } & \$ 4.40 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 84,000 \\\text { Fixed selling costs } & \$ 32,000 \\\text { Fixed administrative costs } & \$ 15,000\end{array}$ During 2017, 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 2017 contribution income statement?

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

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Definitions:

Fair Market Value

The price at which an asset would change hands between a willing buyer and seller, each having reasonable knowledge of relevant facts, and neither being under compulsion to buy or sell.

Material Facts

Facts that are significant or essential to the issue at hand, and that can influence a decision or outcome.

Void

Refers to an agreement or contract that is deemed legally invalid and unenforceable from the outset, as if it never existed.

Reformation

A court-ordered correction or modification of a written contract to reflect the true intentions of the parties when the contract was mistakenly drafted.