Jackson, Inc. is preparing a flexible budget for 1981 and requires a breakdown of the cost of steam used in its factory into the fixed and variable elements. The following data on the cost of steam used and direct-labor hours worked are available for the last six months of 1980:

Month	Cost of Steam	Direct-labor-hours
July	$15,850	3,000
August	12,200	2,000
September	16,370	2,900
October	19,000	3,600
November	17,600	2,670
December	18,500	2,650
Total	$99.520	$16,820

Assuming that Jackson uses the high-low points method of analysis, the estimated variable cost of steam per direct-labor hour should be

Question 6 options:

A)

$4.25.

B)

$4.00.

C)

$6.00.

D)

$5.82.