Ingram Co. manufactures office furniture. During the most productive month of the year, 3,548 desks were manufactured at a total cost of $83,017. In its slowest month, the company made 1,142 desks at

The correct answer is A, $20,861. The high-low method of cost estimation involves using the highest and lowest levels of activity to estimate the fixed and variable components of a cost. In this case, the highest level of activity is 3,548 desks manufactured at a cost of $83,017, and the lowest level is 1,142 desks manufactured at a cost of $40,867. To determine the variable cost per unit of production, we divide the change in cost by the change in activity: Variable cost per unit = (High cost - low cost) / (High activity - low activity) Variable cost per unit = ($83,017 - $40,867) / (3,548 - 1,142) Variable cost per unit = $42.21 We can then use either the high or low activity and cost values to solve for the fixed cost: Fixed cost = Total cost - (Variable cost per unit x Total activity) Fixed cost = $83,017 - ($42.21 x 3,548) Fixed cost = $20,861 Therefore, the total fixed costs for Ingram Co. using the high-low method of cost estimation is $20,861.