Data below relate to the Torrence Company for May and August of the current year:

	May				August
Maintenance hours		26,000				32,000
Maintenance cost	$	1,269,000			$	1,377,000

May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. Which of the following statements is true?

• The variable maintenance cost is $18 per hour.

• More than one of the other answers is true.

• The variable maintenance cost is $24 per hour.

• The fixed maintenance cost is $108,000 per month.

• The variable maintenance cost is $25 per hour.