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Harland Corporation currently produces cardboard boxes in an automated process. Expected production per month is 22 comma 000 ​units, direct material costs are $ 5.00 per​ unit, and manufacturing overhead costs are $ 13 comma 000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 12 comma 000 and 22 comma 000 ​units, respectively?

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Expected production per month is 22,000 ​units, direct material costs are $ 5.00 per​ unit, and manufacturing overhead costs are $ 13,000 per month. Manufacturing overhead is all fixed costs.

FLexible budget for 12,000 and 22,000 ​units.

12,000 units:

Total cost= 12,000*5 + 13,000= 73,000

22,000 units:

Total cost= 22,000*5 + 13,000= 123,000

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