Zebra 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, determine the total fixed costs.

Zebra 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, determine the total fixed costs.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 32BEB: During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine...

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Question

100%

Total fixed Costs?

Zebra 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, determine the total fixed
costs.

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