Miss River 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 Miss River 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 $6,500,000 2,500,000 February 6,187,500 2,250,000 March 6,980,000 2,940,000 April 7,500,000 3,400,000 May 8,775,000 4,500,000 June 8,200,000 4,000,000 Determine the variable cost per gross-ton mile and the fixed cost. Round variable cost per unit to the nearest cent. Variable cost per gross-ton mile Fixed cost

Miss River 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 Miss River 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 $6,500,000 2,500,000 February 6,187,500 2,250,000 March 6,980,000 2,940,000 April 7,500,000 3,400,000 May 8,775,000 4,500,000 June 8,200,000 4,000,000 Determine the variable cost per gross-ton mile and the fixed cost. Round variable cost per unit to the nearest cent. Variable cost per gross-ton mile 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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High-Low Method for Service Company Miss River 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 Miss River 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 $1,346,500 347,000 February 1,501,300 388,000 March 1,061,000 251,000 April 1,439,400 375,000 May 1,207,200 302,000 June 1,547,700 408,000 Determine the variable cost per gross-ton mile and the fixed cost. Round variable cost per unit to the nearest cent. Variable cost $fill in the blank 1 per gross-ton mile Fixed cost $fill in the blank 2
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.
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 $669,600 243,000 February 746,500 272,000 March 527,600 176,000 April 715,700 263,000 May 600,300 212,000 June 769,600 286,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2