Figure 3-3

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