Bebee Corporation Currently Produces Cardboard Boxes in an Automated Process

Multiple Choice

Bebee Corporation currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs are $18,000 per month. Manufacturing overhead is all fixed costs. What is the flexible budget for 20,000 and 40,000 units, respectively?

A) $30,000; $42,000
B) $21,000; $33,000
C) $21,000; $42,000
D) None of these answers are correct.