Sunday, June 5, 2011

Hemberger Corporation currently produces baseball caps in an automated process

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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