KirbyCor's Budgeted Income Statement for 2014 Follows How Much Would Be Reported for Total Variable Costs on (80,000

question 147

Multiple Choice

KirbyCor's budgeted income statement for 2014 follows: $\begin{array}{lr}\text { Sales (80,000 units) }&&\$400,000\\\text { Less: }\\\text { Direct materials } & \$ 120,000 \\\text { Direct labor } & 80,000 \\\text { Variable overhead } & 40,000 \\\text { Fixed costs } & 80,000 &320,000\\\text { Income before taxes }&&\$80,000\end{array}$ How much would be reported for total variable costs on a flexible budget at 75,000 units?

• A) $75,000
• B) $300,000
• C) $225,000
• D) None of the answer choices are correct.

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Definitions:

Ciliary Body

A ring-shaped tissue in the eye that connects the iris to the choroid, playing a key role in focusing vision and producing aqueous humor.

Optic Nerve

The cranial nerve that transmits visual information from the retina to the brain.

Hypothalamus

The hypothalamus is a region of the brain responsible for producing hormones that control body temperature, hunger, moods, release of hormones from many glands, especially the pituitary gland.

Basilar Membrane

A structure in the cochlea of the ear that vibrates in response to sound and aids in the process of hearing.