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:

Stratified

Refers to a structure or material divided into layers, often used to describe layered deposits in geology or stratified societies in sociology.

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A hot, moist biome found near the Earth's equator characterized by high biodiversity and dense canopy layers.

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A terrestrial biome dominated by coniferous trees, which are evergreens that have needle-shaped leaves and produce cones.

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