At the Beginning of the Year, Rangle Company Expected to Incur

question 105

Multiple Choice

At the beginning of the year, Rangle Company expected to incur $63,000 of overhead costs in producing 6,300 units of product. The direct material cost is $29 per unit of product. Direct labor cost is $39 per unit. During January, 590 units were produced. The total cost of the units made in January was:

• A) $40,120
• B) $5,900
• C) $46,020
• D) None of the answers are correct.

---

Definitions:

Profit-Sharing Plan

A retirement plan that gives employees a share in the profits of the company, often vested over time.

Simplified Method

A straightforward calculation approach, often used for determining the taxable portion of annuity payments or retirement benefits.

Qualified Pension Plan

A retirement plan that meets requirements set forth by the IRS to qualify for favorable tax treatment.

Tax-Deferred

Tax-Deferred refers to investment earnings such as interest, dividends, or capital gains that accumulate tax-free until the investor takes constructive receipt of the gains.