1. Strait Co. manufactures office furniture. During the most productive month of the year, 3,100 desks were manufactured at a total cost of $83,500. In the month of lowest production the company made 1,110 desks at a cost of $58,300. Using the high-low method of cost estimation, total fixed costs are

   a.$83,500

   b.$58,300

   c.$44,254

   d.$25,200

2. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $344,000 and direct labor hours would be 47,400. Actual manufacturing overhead costs incurred were $317,700, and actual direct labor hours were 52,900. What is the predetermined overhead rate per direct labor hour?

   a.$7.26

   b.$5.81

   c.$10.89

   d.$8.71