Figure 3-3. Okafor Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected.
Refer to Figure 3-3.What would Okafor Company's cost formula be to estimate the cost of leasing within the relevant range?
A)total lease cost = $456 + ($38.20 ´ machine hours)
B)total lease cost = $516 + ($38.18 ´ machine hours)
C)total lease cost = $420 + ($37.25 ´ machine hours)
D)none of these are correct

Question

Figure 3-3. Okafor Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected.
 Refer to Figure 3-3.What would Okafor Company's cost formula be to estimate the cost of leasing within the relevant range?
A)total lease cost = $456 + ($38.20 ´ machine hours) 
B)total lease cost = $516 + ($38.18 ´ machine hours) 
C)total lease cost = $420 + ($37.25 ´ machine hours) 
D)none of these are correct

Quizplus · Accepted Answer

The Answer of Figure 3-3. Okafor Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected.
 Refer to Figure 3-3.What would Okafor Company's cost formula be to estimate the cost of leasing within the relevant range?
A)total lease cost = $456 + ($38.20 ´ machine hours) 
B)total lease cost = $516 + ($38.18 ´ machine hours) 
C)total lease cost = $420 + ($37.25 ´ machine hours) 
D)none of these are correct