Corrugated Company Currently Produces Cardboard Boxes in an Automated Process

Multiple Choice

Corrugated Company currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The required direct materials cost $0.30 per unit. Manufacturing fixed overhead costs are $24,000 per month. Manufacturing overhead is allocated based on units of production. is the flexible budget for 40,000 and 20,000 units, respectively.

A) $44,000 and $38,000
B) $36,000 and $30,000
C) $26,000 and $20,000
D) $40,000 and $34,000