Boston Railroad decided to use the high-low method and operating data from the past six months to
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Question:
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 | $1,055,700 | 351,000 | ||
February | 1,177,100 | 392,000 | ||
March | 831,900 | 254,000 | ||
April | 1,128,600 | 380,000 | ||
May | 946,500 | 306,000 | ||
June | 1,213,500 | 413,000 |
Determine the variable cost per gross-ton mile and the fixed cost.
Variable cost (Round to two decimal places.) | $fill in the blank 1 per gross-ton mile |
Total fixed cost |
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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