High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $846,300 356,000 February 943,600 398,000 March 666,900 258,000 April 904,700 385,000 May 758,800 310,000 June 972,800 419,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost
High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $846,300 356,000 February 943,600 398,000 March 666,900 258,000 April 904,700 385,000 May 758,800 310,000 June 972,800 419,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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