Budgeted fixed overhead, accounting homework help

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Budgeted fixed overhead, accounting homework help

Question 17

Gardenia operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below:

Meals served

Cafeteria costs

Week 1

900

$ 3,250

Week 2

850

$ 2,700

Week 3

925

$ 3,400

Week 4

875

$ 2,900

Week 5

825

$ 2,500

Week 6

950

$ 3,700

Week 7

960

$ 4,100

Assume that the relevant range includes all of the activity levels mentioned in this problem.

Using the high-low method of analysis, the variable cost per meal served in the cafeteria would be estimated to be _______.

You must show all your calculations.