The Armer Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows:

	Hours of Activity		Maintenance Costs
January	510		$ 4,400
February	310		3,000
March	420		3,400
April	280		2,840
May	510		4,350
June	260		2,990
July	340		2,950
August	520		4,610
September	500		4,330
October	470		3,920
November	370		3,100
December	350		3,060
Sum	4,840		42,950
Average	403		3,579

A coefficient			852.03
B coefficient			6.7615
Standard error of the a cofficient	277.823
Standard error of the a cofficient	0.67136
Standard error of the estimate			215.323
R2			0.91026
T-value a			3.067
T-value b			10.071

What would be the cost equation if the high-low method is used?

A. Maintenance costs = 3,579 + 403 x Hours of activity

B. Maintenance costs = 1,370 + 6.23 x Hours of activity

C. Maintenance costs = 215.323 + 0.91026 x Hours of activity

D. Maintenance costs = 8.10 x Hours of activity