The following data relate to the Lisle Company for May and August of the current year: $\begin{array}{lrr}
& \text { May } & \text { August } \
\text { Maintenance hours } & 25,000 & 29,000 \
\text { Maintenance cost } & \$ 1,175,000 & \$ 1,247,000
\end{array}$ 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: $\begin{array}{lrr} 
& \text { May } & \text { August } \
\text { Maintenance hours } & 25,000 & 29,000 \
\text { Maintenance cost } & \$ 1,175,000 & \$ 1,247,000
\end{array}$ 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: $\begin{array}{lrr} 
& \text { May } & \text { August } \
\text { Maintenance hours } & 25,000 & 29,000 \
\text { Maintenance cost } & \$ 1,175,000 & \$ 1,247,000
\end{array}$ 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