Question

EU places? 6. AO $19,191 DO $58,505 BO $27.826 CO $10.348 OP! The cafeteria at X Company has the following cost and activity information for the first five months of 2019 Meals Cost Month $26,601 7.600 Jamiary 8.283 28.991 February 27.491 7.854 March 9.400 April 30,381 7,823 27.381 Using the high-low method with this data, estimate the total cafeteria cost in December, when 9,200 meals are expected be served fround variable costs per unit to two decimal places 7. AO $12,735 BO $16,938 CO $22,527 DO $29,961 EO $39,848 FO $52.998 May follows

Answer 1

Answer :- Calculation of total Cafeteria cost in December when 9,200 meals are expected to be served :-

Variable Cost per meal = ($30,381 - $26,601)/ (9,400 - 7,600)

Variable cost per meal = $3,780 / 1,800

Variable cost per meal = $2.1

Fixed Cost = $30,381 - ( 9,400 * $2.1)

Fixed Cost = $10,641

Total Cafeteria Cost = (9,200 *2.1) + $10,641

Total Cafeteria Cost = $29,961

So the correct answer is option D. ($29,961).

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