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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 15000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $600000. Fixed and variable costs may be expressed as: Option 1: $30000 fixed plus $38 per direct labor hour variable.
Option 2: $30000 fixed plus $40 per direct labor hour variable.
Option 3: $570000 fixed plus $38 per direct labor hour variable.
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