Vaughan Company had the following costs at two different levels of activity: MH Used 8,000 MH 15,000 MH October September $ 40,000 Cost A $ 75,000 Cost B $ 68,000 $ 117,000 Cost C $ 32,000 $ 32,000 Which of the following statements are true? 1. Cost A and Care variable costs 2. In a month where 10,000 machine hours (MH) are expected to be used, Cost B would be estimated to be $85,000 3. In a month where 12,000 machine hours (MH) are expected to be used and Sales are expected to be $300,000, Vaughan would expect a total contribution margin of $156,000 4. Cost C is a fixed cost Statement #3 O All of the Statements are true Statement #4 O Both Statement #3 and #4 Both Statement #2 and #4 O Statement #2 O Statement #1