Baker Corporation has provided the following production and

Baker Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product 17,000 units Production volume Direct materials Direct labor 15,300 units 5931.7701- $1,035 30O $344.2503825 Manufacturing overhead $1011500$1036150 $1.036150 The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.) O $786.650 O $792.650 O $789650o O $797150

Solution

Using High and Low method units amount High 17,000 1,036,150 Low -15,300 -1,011,500 Difference 1,700 24,650 Variable cost per unit = 24,650/1700 14.5 Fixed cost = 1,036,150 - (17000*14.5) 789650 answer