Strait Co. manufactures office furniture. During the most productive month of the year, 3,600 desks were manufactured at a total cost of $84,800. In the month of lowest production, the company made 1,220 desks at a cost of $61,500. Using the high-low method of cost estimation, total fixed costs are a.$49,556 b.$61,500 c.$23,300 d.$84,800

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter3: Cost Behavior
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Strait Co. manufactures office furniture. During the most productive month of the year, 3,600 desks were manufactured at a total cost of $84,800. In the month of lowest production, the company made 1,220 desks at a cost of $61,500. Using the high-low method of cost estimation, total fixed costs are

a.$49,556
b.$61,500
c.$23,300
d.$84,800
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