2. Harland Corporation currently produces cardboard boxes in an automated process. Expected production
per month is 20,000 units, direct material costs are $3.50 per unit, and manufacturing overhead costs are
$12,000 per month. Manufacturing overhead is all fixed costs. What is the flexible budget for 16,000
units?
(A) $68,000
(B) $82,000
(C) $65,600
(D) $56,000
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