MC.21-081ALGO High-Low Method

Strait Co. manufactures office furniture. During the most productive month of the year, 3,600 desks were manufactured at a total cost of $82,000. In the month of lowest production the company made 1,110 desks at a cost of $59,100.

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

a. Variable cost per unit
b. Total fixed cost