At Zero Direct Labor Hours in a Flexible Budget Graph

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.