Continental 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 Continental 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 225,000 252,000 163,000 244,000 196,000 265,000 Determine the variable cost per gross-ton mile and the total fixed cost. January February March April May June $536,200 597,800 422,500 573,200 480,700 616,300 Variable cost (Round to two decimal places.) Total fixed cost

Continental 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 Continental 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 225,000 252,000 163,000 244,000 196,000 265,000 Determine the variable cost per gross-ton mile and the total fixed cost. January February March April May June $536,200 597,800 422,500 573,200 480,700 616,300 Variable cost (Round to two decimal places.) Total fixed cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During the year 2020, the highest level of activity at peak season was in August (45,500 labor hours for a total cost of $121,450) and the lowest level of activity was in November (18,000 labor hours for a total cost of $80,200). What is the estimated total cost for Mazoon Company at an expected operating level of 32,000 labor hours? O a. None of the answers given O b. $48,000 c. O c. $105,700 O d. $101,200 e. $100,825 14:03 here to search A d0 ENG 15-04-2021 "bet se og up delete home end %23 96 & 7. num + backspace 3 4 6. 8. lock E Y 8 A home pg up 5 0 enter F J K pause C V MI ↑ shift 11 end alt ctri ins
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