Megan Pedigo is confused about how a fl exible budget is prepared. Identify the steps for Megan.
Cali Company has prepared a graph of fl exible budget data.
At zero direct labor hours, the total budgeted cost line intersects
the vertical axis at $20,000. At 10,000 direct labor hours, the line
drawn from the total budgeted cost line intersects the vertical axis at
$85,000. How may the fi xed and variable costs be expressed?
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