Question tco 4 randy company produces a single

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3. Question : (TCO 4) Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and
fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000? Instructor Explanation: Chapter 4, Page 132
Points Received: 4 of 4 Comments: 4. Question : (TCO 5) In full costing, when does fixed manufacturing overhead become an expense?
Instructor Explanation: Chapter 5, Page 168 Points Received: 4 of 4 Comments: 5. Question : (TCO 5) Variable costing income is a function of:
Units produced only Both units sold and units produced. Neither units sold nor units. produced Instructor Explanation: Chapter 5, Page 169 Points Received: 4 of 4 Comments: 6. Question : (TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are: Direct Material per unit Direct Labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year $148,500 In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much fixed manufacturing overhead is in ending inventory under full costing? Student Answer: $0 $49,500 $148,500 $99,000
Instructor Explanation: Chapter 5, Pages 172-174
($148,500 / 45,000) x (45,000 - 30,000) = $49,500 Points Received: 4 of 4 Comments: 7. Question : (TCO 6) Which of the following is not a reason that companies allocate costs?
Instructor Explanation: Chapter 6, Page 198 Points Received: 4 of 4 Comments:

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