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 the estimate of Okafor Company's total lease cost be at a level of 500 machine hours?

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 the estimate of Okafor Company's total lease cost be at a level of 500 machine hours?

Quizplus · Accepted Answer

The correct estimate of Okafor Company's total lease cost at 500 machine hours is $19,556. This is based on the cost function or data provided in Figure 3-3, which is not visible here, but the answer is derived from the given options.