Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs a.are $61,875 b.are $33,875 c.are $24,750 d.cannot be determined from the data given

( C ) Are $24,750 During the most productive month of the year, 4,500 desks were manufactured at a…

Answered: Manley Co. manufactures office…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs

a.
are $61,875

b.
are $33,875

c.
are $24,750

d.
cannot be determined from the data given

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