KirbyCor's Budgeted Income Statement for 2017 Follows How Much Would Be Reported for Total Variable Costs on }(80,000

question 38

Multiple Choice

KirbyCor's budgeted income statement for 2017 follows: $\begin{array}{lr}\text { Sales }(80,000 \text { units) }&&\$400,000\\\text { Less: }\\\text { Direct materials } & \$ 120,000 \\\text { Direct labor } & 80,000 \\\text { Variable overhead } & 40,000 \\\text { Fixed costs } & 80,000&320,000 \\\text { Income before taxes }&&\$80,000\end{array}$ 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.

---

Definitions:

Harmoniously

In a manner that is marked by consensus, accord, or cooperative interaction among parties or elements.

Collectivism

An ideology or social outlook that emphasizes the importance of groups and the collective over individual actions and identity.

Social Frameworks

Structured patterns and systems within which society organizes, interprets, and interacts, encompassing institutions and cultural norms.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.