3.

Month Total Maintenance Cost Production Volume (units)

January $1,880 1,750 units

February $1,800 1,500 units

March $2,200 2,500 units

April $2,120 2,250 units

May $2,300 2,750 units

Using the high-low method, the variable rate for maintenance is:

a) $0.40

b) $0.80

c) $1.20

d) $2.50