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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

The Following Data Relate to the Lisle Company for May