The Following Data Relate to the Torrence Company for May

question 16

Multiple Choice

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

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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. 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 $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.

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Definitions:

Meaning

The inherent or intended significance, definition, or explanation of a word, phrase, or symbol.

Adenocarcinoma

A type of cancer that forms in mucus-secreting glands throughout the body, often found in the lung, prostate, pancreas, and colon.

Abbreviation

The act or result of shortening a word or group of words to form a shorter word or phrase, typically used to save space or avoid repetition.

Lymphatic System

A network of vessels and nodes throughout the body that is involved in transporting lymph, a fluid containing white blood cells and waste products, as well as in immune system functions.