Lunicious Corporation currently produces baseball caps in an automated process.Expected production per month is 15,000 units,direct material costs are $3.50 per unit,and manufacturing overhead costs are $40,000 per month.Manufacturing overhead is entirely fixed costs.What is the flexible budget for 12,000 and 15,000 units,respectively?

Question

Quizplus · Accepted Answer

The flexible budget for 12,000 units is calculated as (12,000 units * $3.50) + $40,000 = $82,000. For 15,000 units, it is (15,000 units * $3.50) + $40,000 = $92,500.

Lunicious Corporation Currently Produces Baseball Caps in an Automated Process