Sierra Railroad Inc. 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 Sierra Railroad is “gross-ton miles,” which is the total number of tons multiplied by the miles moved. Month Transportation Costs Gross-Ton Miles January $693,800 252,000 February 773,600 281,000 March 546,700 182,000 April 741,700 272,000 May 622,100 219,000 June 797,500 296,000 Determine the variable cost per gross-ton mile and the total fixed cost.Variable cost (If required, round to two decimal places.) fill in the blank 1 of 2$ per gross-ton mileTotal fixed cost fill in the blank 2 of 2$
Sierra Railroad Inc. 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 Sierra Railroad is “gross-ton miles,” which is the total number of tons multiplied by the miles moved. Month Transportation Costs Gross-Ton Miles January $693,800 252,000 February 773,600 281,000 March 546,700 182,000 April 741,700 272,000 May 622,100 219,000 June 797,500 296,000 Determine the variable cost per gross-ton mile and the total fixed cost.Variable cost (If required, round to two decimal places.) fill in the blank 1 of 2$ per gross-ton mileTotal fixed cost fill in the blank 2 of 2$
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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Question
Sierra Railroad Inc. 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 Sierra Railroad is “gross-ton miles,” which is the total number of tons multiplied by the miles moved.
| Month | Transportation Costs | Gross-Ton Miles |
|---|---|---|
| January | $693,800 | 252,000 |
| February | 773,600 | 281,000 |
| March | 546,700 | 182,000 |
| April | 741,700 | 272,000 |
| May | 622,100 | 219,000 |
| June | 797,500 | 296,000 |
Determine the variable cost per gross-ton mile and the total fixed cost.
Variable cost (If required, round to two decimal places.) fill in the blank 1 of 2$ per gross-ton mile
Total fixed cost fill in the blank 2 of 2$
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