At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 20000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $210000. Total fixed costs and unit variable costs are: O$180000 fixed plus $2 per direct labor hour variable. O$30000 fixed plus $9 per direct labor hour variable. O $180000 fixed plus $9 per direct labor hour variable. O $30000 fixed plus $11 per direct labor hour variable.

At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 20000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $210000. Total fixed costs and unit variable costs are: O$180000 fixed plus $2 per direct labor hour variable. O$30000 fixed plus $9 per direct labor hour variable. O $180000 fixed plus $9 per direct labor hour variable. O $30000 fixed plus $11 per direct labor hour variable.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 20BEA: Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...

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