Stellar Designs Inc. manufactures custom tables. During the most productive month of the year, 5,200 tables were manufactured at a total cost of $75,400. In the month of lowest production, the company made 2,900 tables at a cost of $52,100. Using the high-low method of cost estimation, total fixed costs are: a. $22,723 b. $28,200 c. $35,400 d. $19,500

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
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Stellar Designs Inc. manufactures custom tables. During the most
productive month of the year, 5,200 tables were manufactured at a
total cost of $75,400. In the month of lowest production, the
company made 2,900 tables at a cost of $52,100.
Using the high-low method of cost estimation, total fixed costs are:
a. $22,723
b. $28,200
c. $35,400
d. $19,500
Transcribed Image Text:Stellar Designs Inc. manufactures custom tables. During the most productive month of the year, 5,200 tables were manufactured at a total cost of $75,400. In the month of lowest production, the company made 2,900 tables at a cost of $52,100. Using the high-low method of cost estimation, total fixed costs are: a. $22,723 b. $28,200 c. $35,400 d. $19,500
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