Corrugated Company Currently Produces Cardboard Boxes in an Automated Process

question 8

Multiple Choice

Corrugated Company currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The required direct materials cost $0.30 per unit. Manufacturing fixed overhead costs are $24,000 per month. Manufacturing overhead is allocated based on units of production. is the flexible budget for 40,000 and 20,000 units, respectively.

• A) $44,000 and $38,000
• B) $36,000 and $30,000
• C) $26,000 and $20,000
• D) $40,000 and $34,000

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