Audio Zone Co

Multiple Choice

Audio Zone Co. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months.Using the high-low method, total monthly fixed overhead cost is calculated to be:

A) $2,626.
B) $2,698.
C) $2,512.
D) $2,907.
E) $2,833.