ACCOUNTING
Multiple Choice
Aebi Corporation currently produces cardboard boxes in an automated process. Expected production per month is 20,000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs are $9,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget for 10,000 and 20,000 units, respectively?
a. $10,500; $16,500
b. $10,500; $21,000
c. $15,000; $21,000
d. none of the above
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