Blowing Rock Railroad decided to use the high-low method and operating data from the past six months
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Blowing Rock 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 Blowing Rock 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 Gross-Ton Miles 275,000 310,000 200,000 Costs $760,000 850,000 600,000 810,000 680,000 875,000 January February March April 240,000 325,000 May June
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The fixed cost can be determined by subtracting the estimated total variable cost from the ...View the full answer
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Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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