Dynozz Corporation currently produces cardboard boxes in an automated process.Expected production per month is 15,000 units,direct material costs are $0.50 per unit,and manufacturing overhead costs are $15,000 per month.Manufacturing overhead is all fixed costs.What are the flexible budget for 10,000 and 15,000 units,respectively?
A) $15,000; $22,500
B) $15,000; $17,500
C) $20,000; $22,500
D) $20,000; $17,500

Question

Quizplus · Accepted Answer

The flexible budget includes variable costs and fixed costs. For 10,000 units: (10,000 units * $0.50) + $15,000 = $20,000. For 15,000 units: (15,000 units * $0.50) + $15,000 = $22,500.

Dynozz Corporation Currently Produces Cardboard Boxes in an Automated Process