Question
The following data relate to the Torrence Company for May and August: May August Maintenance hours 22,000 25,000 Maintenance cost $ 1,265,000 $ 1,307,000 May
The following data relate to the Torrence Company for May and August:
| May | August | ||||||
| Maintenance hours | 22,000 | 25,000 | |||||
| Maintenance cost | $ | 1,265,000 | $ | 1,307,000 | |||
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 23,000 hours in October, which of the following statements is true?
Multiple Choice
-
Total maintenance costs will be $1,265,000.
-
Total maintenance costs will be $1,270,000.
-
Total maintenance costs will be $1,279,000.
-
Total maintenance costs will be $1,284,000.
-
Total maintenance costs will be $1,307,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Forensic Accounting And Fraud Examination
Authors: Mary Jo Kranacher, Richard Riley
2nd Edition
1119494338, 9781119494331
