Question: At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 5000 direct labor

At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 5000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $60000. Fixed and variable costs may be expressed as:

$30000 fixed plus $6 per direct labor hour variable.

$30000 fixed plus $12 per direct labor hour variable.

$30000 fixed plus $6 per direct labor hour variable.

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