Exhibit 18-6 the July Manufacturing Overhead Budget of Kyoto Corporation

Exhibit 18-6 The July manufacturing overhead budget of Kyoto Corporation, shown below, was constructed assuming an activity level of 48,000 direct labor hours:

- Refer to Exhibit 18-6. If management prepared a flexible budget for July using 40,000 direct labor hours, what amount would this flexible budget show for total variable costs?

A) $76,000
B) $83,600
C) $87,200
D) $91,200