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Data Below Relate to the Torrence Company for May and August

Question 88

Multiple Choice

Data below relate to the Torrence Company for May and August of the current year: Data below relate to the Torrence Company for May and August of the current year: 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 $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. 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 $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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