The Following Data Relate to the Lisle Company for May

question 76

Multiple Choice

The following data relate to the Lisle Company for May and August of the current year:
May and August were the lowest and highest activity levels,and Lisle 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 above statements is truE.

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Definitions:

Import Quota

A government-imposed limit on the quantity of a specific type of good that can be imported into the country during a specified time period.

Domestic Industries

Industries that produce goods and services within a particular country, focusing on the local market.

Foreign Supply

The availability of goods or services from international markets offered for sale in a domestic market.