COST ACCOUNTING
CAPITAL BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At the 0 (zero) direct labor-hour level on the flexible-budget graph, total budgeted costs intersect the vertical axis at $30,000. At the 10,000 direct labor-hour level on the horizontal axis, total budgeted costs intersect the vertical axis at
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$30,000 fixed costs + $6 per direct labor hour as variable costs.
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$30,000 fixed costs + $9 per direct labor hour as variable costs.
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$60,000 fixed costs + $3 per direct labor hour as variable costs.
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$60,000 fixed costs + $6 per direct labor hour as variable costs.
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Explanation:
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