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Question Content Area Strait Co. manufactures office furniture. During the most productive month of the year, 3, 800 desks were manufactured at a total cost of $83, 300. In the month lowest production, the company made 1, 140 desks at a cost of $64, 000. Using the high-low method of cost estimation, total fixed costs are a. $55,712 b. $19,300 c. $83, 300 d. $64,000

Question Content Area Strait Co. manufactures office furniture. During the most productive month of the year, 3, 800 desks were manufactured at a total cost of $83, 300. In the month lowest production, the company made 1, 140 desks at a cost of $64, 000. Using the high-low method of cost estimation, total fixed costs are a. $55,712 b. $19,300 c. $83, 300 d. $64,000

FINANCIAL ACCOUNTING
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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Question Content Area Strait Co. manufactures office furniture. During the most productive month of the year, 3, 800 desks were manufactured at a total cost of $83, 300. In the month lowest production, the company made 1, 140 desks at a cost of $64, 000. Using the high-low method of cost estimation, total fixed costs are a. $55,712 b. $19,300 c. $83, 300 d. $64,000
Transcribed Image Text:Question Content Area Strait Co. manufactures office furniture. During the most productive month of the year, 3, 800 desks were manufactured at a total cost of $83, 300. In the month lowest production, the company made 1, 140 desks at a cost of $64, 000. Using the high-low method of cost estimation, total fixed costs are a. $55,712 b. $19,300 c. $83, 300 d. $64,000
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