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.

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

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.​ ​
​
 ​
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 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.​ ​
​
 ​
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

Okafor Company Manufactures Skis