The Following Data Relate to the Lisle Company for May

question 61

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)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:

Set Point

A theory suggesting that each individual has a genetically determined range of optimal weight and temperature that their body regulates to maintain.

Set Point

A theory suggesting that an individual's body weight and other physiological factors are regulated at a predetermined, or 'set', level by the brain.

Hunger

The physiological need for food, experienced as a compelling sensation prompting individuals to eat.

Metabolic Rate

The rate at which the body consumes energy to maintain basic bodily functions like breathing, circulation, and cell production.