The following data relate to the Torrence Company for May and August: May August Maintenance hours 20,000 25,000 Maintenance cost $ 1,262,000 $ 1,367,000 May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 23,000 hours in October, which of the following statements is true? Multiple Choice