Thoroughbred 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 Thoroughbred 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 Transportation Costs Gross Ton Miles 1,463,000 1,372,000 1,322,000 1,641,000 1,522,000 1,748,000 January February March 595,000 540,000 485,000 740,000 670,000 840,000 April May June

Question: Thoroughbred 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

Thoroughbred 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 Thoroughbred Railroad is a measure of railroad operating activity, termed €œgross-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.

Transportation Costs Gross-Ton Miles 1,463,000 1,372,000 1,322,000 1,641,000 1,522,000 1,748,000 January February March 595,000 540,000 485,000 740,000 670,000 840,000 April May June

Step by Step Solution

★★★★★

3.46 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The fixed cost can be determined by subtracting the estimated total vari... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

186-B-M-A-C-V-P (1058).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

The management of an entity has decided to use the fair value basis for the measurement of its equipment. Some of this equipment is very hard to obtain and has in fact increased in value over the...

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...

Missoula 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...

please use third photo the parte do corpo. The und Transportation Costa Gros los 100 000 20.000 2000 1. 30.000 13.000 000 000 tot el places) High-Low Method for a Service Company Continental Railroad...

High-Low Method for Service Company Miss River 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...

High-Low Method for a Service Company 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...

High-Low Method for Service Company 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...

High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production...

Relevant Range and Fixed and Variable Costs Child Play Inc. manufactures electronic toys within a relevant range of 76,800 to 128,000 toys per year. Within this range, the following partially...

Consider the recent intrusions around the world of large and important databases. Is here a safe place anymore for companies to store their data? Discuss how companies today are trying to overcome...

You have recently been appointed in the credit department of Stranded Bank. One of your main tasks is to do credit evaluations of the loan applications made by small and medium enterprises. The...

Peifan is taking an Interest Only loan to purchase a $ 4 1 3 , 0 0 0 property with 0 . 9 LTV . The loan is issued for 1 5 years with monthly payments and has a fixed interest rate at 7 % . Under this...

Identify the risks faced by the companies in this segment, potentially impacting their growth.

Based on the increasing theft rate in Sunset Harbor, the Harbor is planning to upgrade its security system. It is a 4 year-period project and will significantly increase Sunset Harbors security...

python can add two strings together with ' + ' operator

QUESTION 7 Shares of a closed-end fund are trading at a 6% premium to its $10 net asset value. The current market price of the fund's shares are closest to: a. $9.40. b. $10.06. c. $10.60. d. $16.00....