Sunshine Coast Corporation currently produces sun hats in an automated process.Expected production per month is 20 000 units,direct material costs are $3.00 per unit,and manufacturing overhead costs are $46 000 per month.Manufacturing overhead is allocated based on units of production.What is the flexible budget for 10 000 and 20 000 units,respectively?

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Quizplus · Accepted Answer

For 10,000 units: Direct material costs = $3.00 * 10,000 = $30,000. Manufacturing overhead costs = $46,000 (fixed). Total = $30,000 + $46,000 = $76,000. For 20,000 units: Direct material costs = $3.00 * 20,000 = $60,000. Manufacturing overhead costs = $46,000 (fixed). Total = $60,000 + $46,000 = $106,000.

Sunshine Coast Corporation Currently Produces Sun Hats in an Automated