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 $484,400 228,000 February 540,100 255,000 March 381,700 165,000 April 517,800 247,000 May 434,300 198,000 June 556,800 268,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) X per gross-ton mile Total fixed cost

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 $484,400 228,000 February 540,100 255,000 March 381,700 165,000 April 517,800 247,000 May 434,300 198,000 June 556,800 268,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) X per gross-ton mile Total fixed cost

Name: High-Low Method for a Service CompanyBoston Railroad decided to use th
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Description: High-Low Method for a Service CompanyBoston 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

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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