Banff Company Manufactures Snowboards -Refer to the Figure

question 194

Multiple Choice

Banff Company manufactures snowboards. 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. $\begin{array}{lrr}& & \text { Machine } \\\text { Month } &\text { Lease cost } & \text { hours }\\\text { April } & \$ 21,000 & 550 \\\text { May } & 16,500 & 420 \\\text { June } & 19,000 & 510 \\\text { July } & 22,230 & 570\end{array}$
-Refer to the Figure.What would be the estimate of Banff Company's total lease cost at a level of 500 machine hours?

• A)$16,464
• B)$18,546
• C)$19,556
• D)$19,606

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Definitions:

Scoliosis

A medical condition characterized by a sideways curvature of the spine that occurs most often during the growth spurt just before puberty.

Spina Bifida

A birth defect where there is incomplete closing of the spine and membranes around the spinal cord during early pregnancy.

Herniated Disk

A condition where a disk in the spine slips or ruptures, potentially pressing on nearby nerves and causing pain or other symptoms.

Ethmoidal

Pertaining to the ethmoid bone, a spongy, cubical bone contributing to the structure of the nasal cavity and the orbits of the eyes.