At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the
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At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000. At 10,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90,000. Fixed and variable costs may be expressed as:
(a) $30,000 fixed plus $6 per direct labor hour variable.
(b) $30,000 fixed plus $9 per direct labor hour variable.
(c) $60,000 fixed plus $3 per direct labor hour variable.
(d) $60,000 fixed plus $6 per direct labor hour variable.
AppendixLO1
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Related Book For
Accounting Tools For Business Decision Making
ISBN: 9781118771112
5th Edition
Authors: Kimmel, Wetlands, Kieso
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