In Strassel Company’s flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at $36,000. The total budgeted cost line is $186,000 at an activity level of 50,000 direct labor hours. Compute total budgeted costs at 30,000 direct labor hours.

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Costs (in 000) 150 100 50 10 20 30 40 Direct Labor Hours (in 000) i I I I I I I I I ! I I I I I I 50