Figure 3-6

Multiple Choice

Figure 3-6. Taran Company incurred the following costs for the months of January and February.
Refer to Figure 3-6.Assume that output was 5,000 units in January and 10,000 units in February,utility cost is a mixed cost,and the fixed cost of utilities was $3,000.What was the variable rate per unit of output for utilities cost?

A) $.60
B) $.40
C) $.20
D) $.30