What are the actual variable costs (C)?

ACCOUNTING

Multiple Choice

Peters’ Company manufacturers tires. Some of the company's data was misplaced. Use the following information to replace the lost data:


Actual

Results

Flexible-Budget

Variances

Flexible

Budget

Sales-Volume

Variances

Static

Budget

Units

sold

#225,000



#225,000



#206,250



Revenues

$84,160

$2,000 F

(A)

$2,800 U

(B)

Variable

costs

(C)

$400 U

$31,720

$4,680 F

$36,400

Fixed

costs

$16,560

$1,720 F

$18,280

0

$18,280

Operating

income

$35,480

(D)

$32,160

(E)

$30,280


What are the actual variable costs (C)?

a. $36,400

b. $32,120

c. $31,320

d. $27,040


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