-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: vior Activity Rate $46.00 per railcar 12.40 per train-mile 7.20 per train-mile 31.00 per railcar wing for April: Total 37,115 3,817 any for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. Pittsburgh/ Atlanta Tota %6
-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: vior Activity Rate $46.00 per railcar 12.40 per train-mile 7.20 per train-mile 31.00 per railcar wing for April: Total 37,115 3,817 any for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. Pittsburgh/ Atlanta Tota %6
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 17E: Variable costing income statement for a service company East Coast Railroad Company transports...
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![Variable
Costing Income Statement for a Service Company
East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:
Amount Cost Behavior
Cost
Labor costs for loading and unloading railcars
Fuel costs
$175,582 Variable
460,226 Variable
267,228 Variable
118,327
Variable
194,400
Fixed
129,600
Fixed
$1,345,363
1
Operating statistics from the management information system reveal the following for April:
Atlanta/
Baltimore
Baltimore/ Pittsburgh/
Pittsburgh Atlanta
12,835
10,200
425
$600
Train crew labor costs
Switchyard labor costs
Track and equipment depreciation
Maintenance
Number of train-miles
Number of railcars
Revenue per railcar
Line Item Description
Revenues
Variable costs:
Labor costs for loading and unloading railcars
Fuel costs
Train crew labor costs
Switchyard labor costs
Total variable costs
2,160
$275
Contribution margin
Contribution margin ratio
14,080
1,232
$440
a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin.
East Coast Railroad Company
Contribution Margin by Route
For the Month Ended April 30
Activity Rate
$46.00 per railcar
12.40 per train-mile
7.20 per train-mile
31.00 per railcar
%
Total
37,115
3,817
Atlanta/ Baltimore/ Pittsburgh/
Baltimore Pittsburgh Atlanta
96
Total
goodbold
gooolblblå
%6
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6aa82dbe-8c8b-4996-9a13-eb9c20d088fb%2F1576a54a-2dd2-4fc1-8290-92787b66e5ef%2Feywr01e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Variable
Costing Income Statement for a Service Company
East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:
Amount Cost Behavior
Cost
Labor costs for loading and unloading railcars
Fuel costs
$175,582 Variable
460,226 Variable
267,228 Variable
118,327
Variable
194,400
Fixed
129,600
Fixed
$1,345,363
1
Operating statistics from the management information system reveal the following for April:
Atlanta/
Baltimore
Baltimore/ Pittsburgh/
Pittsburgh Atlanta
12,835
10,200
425
$600
Train crew labor costs
Switchyard labor costs
Track and equipment depreciation
Maintenance
Number of train-miles
Number of railcars
Revenue per railcar
Line Item Description
Revenues
Variable costs:
Labor costs for loading and unloading railcars
Fuel costs
Train crew labor costs
Switchyard labor costs
Total variable costs
2,160
$275
Contribution margin
Contribution margin ratio
14,080
1,232
$440
a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin.
East Coast Railroad Company
Contribution Margin by Route
For the Month Ended April 30
Activity Rate
$46.00 per railcar
12.40 per train-mile
7.20 per train-mile
31.00 per railcar
%
Total
37,115
3,817
Atlanta/ Baltimore/ Pittsburgh/
Baltimore Pittsburgh Atlanta
96
Total
goodbold
gooolblblå
%6
%
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