A. $15,000
B. $35,000
C. $65,000
D. $75,000
✅ The correct answer is option C.
Actual costs = Flexible budget amount + Variable overhead flexible budget variance
= $40000 + $25000 = $65,000.
Actual costs = Flexible budget amount + Variable overhead flexible budget variance
= $40000 + $25000 = $65,000.