Boston railroad decided... account question Boston Railroad decided to use the high-low method and operatingdata from the past six months to estimate the fixed and variablecomponents of transportation costs. The activity base used byBoston Railroad is a measure of railroad operating activity, termed"gross-ton miles," which is the total number of tons multiplied by themiles moved.Transportation Costs Gross-Ton MilesJanuary $807,500307,000February 900,400343,000March 636,300222,000April863,200332,000May724,000267,000June928,200361,000Determine the variable cost per gross-ton mile and the fixed cost.

Step 1: Define Segregation of Mixed CostsThe total costs incurred by a firm could be broadly of…

Answered: Boston Railroad decided to use the…

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

See similar textbooks

Similar questions

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 $636,300 254,000 February 709,500 284,000 March 501,400 184,000 April 680,200 275,000 May 570,500 221,000 June 731,400 299,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2
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 $1,776,000 560,000 February 2,700,000 1,000,000 March 1,650,000 500,000 April 1,860,000 600,000 May 1,440,000 400,000 June 1,566,000 460,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) per gross-ton mile Total fixed cost $
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 costs. The activity base used by Miss River 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 $994,800 274,000 February 1,109,200 306,000 March 783,900 198,000 April 1,063,500 296,000 May 891,900 238,000 June 1,143,500 322,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost per gross-ton mile Fixed cost
I want to answer for this question
The following information is available for a company's maintenance cost over the last seven months. Maintenance Cost Month Units Produced June July 100 190 August 110 d September 140 October 200 November 230 50 $ 4,550 6,530 4,770 5,430 6,750 7,410 3,450 December Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per unit produced Cost at highest volume - Cost at lowest volume Highest volume Lowest volume Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit produced Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: $ 3,960 $ 7,410.00 230 units $ $ $ 3,450.00 Lowest volume 50 units. Variable cost per unit produced $ Total variable costs at lowest volume Total fixed costs $ Variable cost per unit produced = *Red text indicates no response was expected in a cell or a…
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 60 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Change in cost Change in volume Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Maintenance Cost $ 4,190 6,260 4,880 5,570 6,950 7,640 3,500 Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs High-Low method - Calculation of variable cost per unit produced Cost at high point minus cost at low point Volume at high point minus volume at low point
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 60 Change in cost Change in volume Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Maintenance Cost $ 4,590 7,110 5,430 6,270 7,950 8,790 3,750 Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs High-Low method - Calculation of variable cost per unit produced Cost at high point minus cost at low point Volume at high point minus volume at low point $5,040 Variable cost per unit produced = 180 $ 28.00
The table below shows the freight costs per tonne recorded in the middle of the month for deliveries to a remote construction site over 1 year: January February March April May June July August September October November December 1787 1165 1015 1758 1671 1237 1976 1860 1391 1741 1969 1221 Determine the monthly volatility for these freight costs? (Answer to 3 decimal places) Determine the annual volatility? (Answer to 3 decimal places)
Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6 months. Total Cost Units Produced $47,149 19,420 July 51,792 34,528 August 59,345 38,844 September 48,150 23,738 October 80,385 43,160 November 66,898 41,002 December Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, eg. 2.25.) Variable cost per unit $ Compute the fixed cost elements using the high-low method Fixed costs $ lhp 19 m ho K4 ins prt sc delet 6 7 backde
The following data relate to the Lisle Company for May and August of the current year: May 25,000 $1,175,000 August 29,000 $1,247,000 Maintenance hours Maintenance cost May and August were the lowest and highest activity levels, and Lisle uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true? Select one: O a. Total maintenance costs will be $1,175,000. O b. Total maintenance costs will be $1,182,000. Oc. Total maintenance costs will be $1,193,000. O d. Total maintenance costs will be $1,221,000. e. Total maintenance costs will be $1,247,000. Clear my choice tion 23 Maintenance costs at a Tierce Corporation factory are listed below: yet vered Machine-Hours 3,658 Maintenance Cost $52,986 nts out of January February 3,613 $52,580 3,607 3,614 March $52,504 Flag April S52,585 w MacBook Air 20 >> F4 F5 F6 F7 F8 F9 F10 % & 4. 7 8 9. Y U R.
Sunland Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 18,060 $33,913 August 32,096 48,144 September 36,108 55,165 October 22,066 38,114 November 40,120 74,724 December 38,114 62,186 (A) Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit $enter the variable cost per unit in dollars rounded to 2 decimal places (B) Compute the fixed cost elements using the high-low method. Fixed costs $enter the fixed costs in dollars
Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Maintenance Costs July 19,900 $44,732 August 35,552 53,328 September 39,996 61,105 October 24,442 46,388 November 44,440 82,769 December 42,218 68,882 Compute the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit $enter the variable cost per unit in dollars rounded to 2 decimal places Compute the fixed costs using the high-low method for this mixed cost. Total fixed costs $enter the fixed costs in dollars

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS