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Business, 01.02.2021 21:00 pricebrittany41
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.
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The following data relate to the Torrence Company for May and August:
May August
Maintenance...
Maintenance...
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