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

a. $26,000; $20,000

b. $36,000; $30,000

c. $40,000; $34,000

d. $44,000; $38,000

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