Data below relate to the Torrence Company for May and August of the current year:
May August
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Business, 01.02.2021 21:30 jilliangillespie
Data below relate to the Torrence Company for May and August of the current year:
May August
Maintenance hours 25,000 29,000
Maintenance cost $1,175,000 $1,247,000
May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. Which of the following statements is true?
a. The variable maintenance cost is $18 per hour.
b. The variable maintenance cost is $22 per hour.
c. The variable maintenance cost is $24 per hour.
d. The fixed maintenance cost is $72,000 per month.
e. More than one of the other answers is true.
Answers: 1
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