Question: At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $25000. At 20000 direct labor
At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $25000. At 20000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $125000. Fixed and variable costs may be expressed as: $25000 fixed plus $5 per direct labor hour variable. $100000 fixed plus $1 per direct labor hour variable. $100000 fixed plus $5 per direct labor hour variable. $25000 fixed plus $6 per direct labor hour variable
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