The Following Data Relate to the Torrence Company for May

question 90

Multiple Choice

The following data relate to the Torrence Company for May and August of the current year:

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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 $43 per hour.
• B) The variable maintenance cost is $45 per hour.
• C) The variable maintenance cost is $47 per hour.
• D) The fixed maintenance cost is $725,000 per month.
• E) More than one of the other answers is true.

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Definitions:

Ludlow Massacre

An event in 1914 where a labor conflict between miners and the Colorado National Guard led to the death of numerous strikers and their families.

Union Recognition

The formal acknowledgment by an employer that a labor union represents the collective interests of its workers, often followed by collective bargaining.

Better Wages

An improvement in the compensation that workers receive for their labor, often a key objective of labor unions and worker advocacy groups.

National Labor Relations Act

A foundational piece of U.S. legislation, established in 1935, that protects workers' rights to organize, to bargain collectively, and to engage in other activities related to collective bargaining and mutual aid.