ACCOUNTING
Multiple Choice
Hemberger Corporation currently produces baseball caps in an automated process. Expected production per month is 20,000 units, direct material costs are $1.50 per unit, and manufacturing overhead costs are $23,000 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. $26,500; $41,500
b. $26,500; $53,000
c. $38,000; $53,000
d. none of the above
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