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Jackson, Inc., is preparing a flexible budget for next year and requires a breakdown of the cost of steam used in its factory into the

Jackson, Inc., is preparing a flexible budget for next year 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 6 months of this year:

Month

Cost of Steam

Direct Labor Hours

July

$ 15,850

3,000

August

13,400

2,050

September

16,370

2,900

October

19,800

3,650

November

17,600

2,670

December

18,500

2,650

Total

$101,520

16,920

Assuming that Jackson uses the high-low method of analysis, the estimated variable cost of steam per direct labor hour is __________?

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