The following data relate to the Torrence Company for May and August:
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. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true?
a. Total maintenance costs will be $1,182,000.
b. Total maintenance costs will be $1,193,000.
c. Total maintenance costs will be $1,247,000.
d. Total maintenance costs will be $1,221,000.
e. Total maintenance costs will be $1,175,000.
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The following data relate to the Torrence Company for May and August:
May August
Maintenance...
Maintenance...
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