Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following data relate to the torrence company

The following data relate to the Torrence Company for May and August of the current...

80.2K

Verified Solution

Question

Accounting

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

May August
Maintenance hours 22,000 28,000
Maintenance cost $ 1,273,000 $ 1,387,000

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?

  • The variable maintenance cost is $50 per hour.

  • The variable maintenance cost is $58 per hour.

  • The variable maintenance cost is $51 per hour.

  • The fixed maintenance cost is $855,000 per month.

  • More than one of the other answers is true.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

(1 point) Two chemicals A and B are combined to form a chemical C. The rate...

Finance
1.2K views

It is now January 1. You plan to make a total of 5 deposits of $300...

Physics
1.2K views

When you examine the calculated power outputs, how does the Lewis equation compare with the Johnson...

Mechanical Engineering
1.2K views

A request has been received from an external customer for recommendations for linear position control sensors...

General Management
1.2K views

Do the Courts have too much power to make policy from the bench? Consider issues such...

Biology
1.2K views

3 Give an example of one selective agar medium and one differential agar medium other...

Biology
1.2K views

Question 7 The genetic code is said to be redundant because one anticodon can attach...

Statistics
1.2K views

as needed Determine the domain and range using the indicated notation and whether or not...

Calculus
1.2K views

3 2 f x x 4x 4x

Calculus
1.2K views

7 Find an equation of the line tangent to the graph of e x 1...

Accounting
1.2K views

Transfer Pricing at Absorption Cost Please provide a detailed and well articulared response....

Accounting
1.2K views

ournalizing purchase and sales transactions 22 J lournalize the following transactions for Soul Art Gift...