At Zero Direct Labor Hours in a Flexible Budget Graph

question 93

Multiple Choice

At zero direct labor hours in a flexible budget graph the total budgeted cost line intersects the vertical axis at $30000. At 15000 direct labor hours a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90000. Fixed and variable costs may be expressed as:

• A) $30000 fixed plus $4 per direct labor hour variable.
• B) $30000 fixed plus $6 per direct labor hour variable.
• C) $60000 fixed plus $2 per direct labor hour variable.
• D) $60000 fixed plus $4 per direct labor hour variable.

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Definitions:

Plug Weld

A weld made in a circular hole in one member of a joint fusing it to the surface of another member.

Weld Symbol

A standardized symbol on technical drawings specifying the type, location, and details of welds required for joining pieces of metal.

Seam Welds

Continuous welds made along the seam of two materials, such as sheets or panels, to join them together.