The following data relate to the Lisle Company for May and August of the current year:

Picture May and August were the lowest and highest activity levels, and Lisle uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true?

Select one:

a. The variable maintenance cost is $24 per hour.

b. The fixed maintenance cost is $72,000 per month.

c. More than one of the other answers is true.

d. The variable maintenance cost is $22 per hour.

e. The variable maintenance cost is $18 per hour.

Maintenance hours Maintenance cost May 25,000 $1,175,000 August 29,000 $1,247,000