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Problem 1: At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 15000direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $120000. Fixed and variable costs may be expressed as:
Option 1: $30000 fixed plus $8 per direct labor hour variable.Option 2: $90000 fixed plus $2 per direct labor hour variable.Option 3: $30000 fixed plus $6 per direct labor hour variable.Option 4: $90000 fixed plus $6 per direct labor hour variable.
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