Ranger Roadsters Experienced the Following Costs in 2017 (Assume the Same

question 98

Multiple Choice

Ranger Roadsters experienced the following costs in 2017 (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Direct materials } & \$ 4.85 \text { per unit } \\\text { Direct labor } & \$ 2.10 \text { per unit } \\\text { Manufacturing overhead costs } &\\\text { Variable } & \$ 2.25 \text { per unit } \\\text { Fixed } & \$ 75,075\\\text { Selling \& administrative costs }\\\text { Variable selling } & \$ 0.95 \text { per unit } \\\text { Fixed selling } & \$ 8,000 \\\text { Fixed administrative } & \$ 2,000\end{array}$ 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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Definitions:

Subliminal Perception

The processing of information by sensory systems without a person's conscious awareness.

False Alarm

An error or false report indicating a problem or emergency when none actually exists.

Just Noticeable Difference

The smallest difference in stimulation that can reliably be detected by an organism, often referred to as the "difference threshold."

Absolute Threshold

The minimum intensity of a stimulus required to be perceivable by our senses.