Sunday, June 5, 2011

Aebi Corporation currently produces cardboard boxes in an automated process

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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