Great Plains Railroad decided to use the high-low method and operating data from the past six months
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Great Plains 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 Great Plains Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved.
Determine the variable cost per gross-ton mile and the fixedcost.
Transcribed Image Text:
Transportation Costs Gross-Ton Miles anuary February March April $1,050,000 1,150,000 1,350,000 1,000,000 1,225,000 1,600,000 285,000 325,000 400,000 250,000 375,000 450,000 May June
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The fixed cost can be determined by subtracting the estimated total variab...View the full answer
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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