The Beach Company Currently Produces Sandals in an Automated Process

Multiple Choice

The Beach Company currently produces sandals in an automated process. Expected production per month is 20,000 units. The required direct materials cost is $1.50 per unit. Manufacturing fixed overhead costs are $30,000 per month. Manufacturing overhead is allocated based on units of production. is the flexible budget for 15,000 and 20,000 units, respectively.

A) $52,500 and $60,000
B) $88,000 and $76,000
C) $45,000 and $60,000
D) $22,500 and $30,000