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Riyyad Co. produces its only product in a highly automated process, expected monthly production is 50,000 units. The required direct material costs $0.85 per unit. Manufacturing overhead costs are $75,000 per month and are allocated based on units of production.
-What is the total flexible budget for 50,000 units and 25,000 units, respectively?
A) $117,500; $58,750
B) $ 75,000; $37,500
C) $ 75,000; $38,000
D) $117,500; $96,250

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The Answer of Use the following to answer questions:
Riyyad Co. produces its only product in a highly automated process, expected monthly production is 50,000 units. The required direct material costs $0.85 per unit. Manufacturing overhead costs are $75,000 per month and are allocated based on units of production.
-What is the total flexible budget for 50,000 units and 25,000 units, respectively?
A) $117,500; $58,750
B) $ 75,000; $37,500
C) $ 75,000; $38,000
D) $117,500; $96,250

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