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

question 63

Multiple Choice

At the beginning of the year, Rangle Company expected to incur $58,000 of overhead costs in producing 5,800 units of product. The direct material cost is $24 per unit of product. Direct labor cost is $34 per unit. During January, 540 units were produced. The total cost of the units made in January was:

• A) $31,320
• B) $5,400
• C) $36,720
• D) None of the answers are correct.

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Definitions:

Sales Price

Sales Price is the amount of money charged for a product or service in the market.

Net Operating Income

A financial metric that calculates a company's profit after subtracting operating expenses but before interest and taxes.

Line Chart

A type of chart which displays information as a series of data points called 'markers' connected by straight line segments.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion.