The following data relate to the Torrence Company for May and August: May August
Maintenance hours 25000 29,000
Maintenance cost $1175,000 $1247,000

May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true?

a. The variable maintenance cost is $24 per hour.
b. The fixed maintenance cost is $72,000 per month.
c. More than one of the other answers is true.
d. The variable maintenance cost is $22 per hour.
e. The variable maintenance cost is $18 per hour.

Variable cost per unit= $18 per unit

Explanation:

First, we need to calculate the unitary and fixed costs under the high-low method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (1,247,000 - 1,175,000) / (29,000 - 25,000)

Variable cost per unit= $18 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 1,247,000 - (18*29,000)

Fixed costs= $725,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 1,175,000 - (18*24,000)

Fixed costs= $725,000

Total cost= 725,000 + 18*x

x= number of hours

For 26,000:

Total cost= 725,000 + 18*26,000

Total cost= $1,193,000

enlightenment impacted society by introducing the idea that mankind could use reason to discover the laws of the world and the rights of mankind. these ideals affected all factions of society, from politics to religion.