The Following Data Relate to the Torrence Company for May

question 33

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) Total maintenance costs will be $1,175,000.
• B) Total maintenance costs will be $1,182,000.
• C) Total maintenance costs will be $1,193,000.
• D) Total maintenance costs will be $1,221,000.
• E) Total maintenance costs will be $1,247,000.

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Definitions:

Amygdala

A region of the brain involved in experiencing emotions, particularly fear and pleasure.

Affect

In psychology, a term indicating “emotion” or “mood.”

Emotion

The “feeling” aspect of consciousness, characterized by a certain physical arousal, a certain behavior that reveals the emotion to the outside world, and an inner awareness of feelings.

Mania

A mental state characterized by extremely elevated mood, energy, and unusual thought patterns, often seen in bipolar disorder.