Zebra Corporation Currently Produces Baseball Caps in an Automated Process

Multiple Choice

Zebra Corporation currently produces baseball caps in an automated process. Expected production per month is 17,000 units, direct material costs are $7.50 per unit, and manufacturing overhead costs are $60,000 per month. Manufacturing overhead is entirely fixed costs. What is the flexible budget for 11,000 and 17,000 units, respectively?

A) $60,000; $187,500
B) $60,000; $105,000
C) $142,500; $187,500
D) $142,500; $105,000