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 (40,500 labor hours for a total cost of \$120,400) and the lowest level of activity was in November (13,000 labor hours for a total cost of $79,150 ). What is the estimated total cost for Mazoon Company at an expected operating level of 35, 000 labor hours ? a. $104.650 O b. None of the answers given c. 112.150 d. $52,500 e. $99.775
Culver World provided the following data concerning its costs of operating and the number of riders of its Scream ride and the related linear regression for selected operation months: Riders Operating costs January $2.40 $1.84 $1.94 O $2.05 2900 $8640 February March April 2800 $8510 2300 2210 May 2500 $7490 $6984 $7910 Using the high-low method, what is the unit variable cost for the Scream ride? June 2700 $8580
A company has a net income of $918,000 based on variable costing method. Beginning and ending inventories were 56,800 units and 55,600 units. Assume the fixed overhead per unit was $2.15 for both the beginning and ending inventory. What will be the net income under absorption costing?
Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $70,557 in March and rose to $90,644 in April. It costs Western Trucking $0.61 per mile in variable costs. In March, the delivery trucks were driven a total of 81,549 miles, and in April, they were driven a total of 96,989 miles. Using this information, answer the following: What were the total costs to operate the fleet in March? Round to the nearest whole dollar, no decimals.
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Per Unit $ 200 $ 72 $ 50 $ 10 $8 Multiple Choice $ 287,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $28,700. The absorption costing net operating income will be lower than the variable costing net operating income by $100,700. Per Year The absorption costing net operating income will be higher than the variable costing net operating income by $28,700.
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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
Pacific Inc. has provided the following data for the latest quarter of the most recent year: Sales $300,000 Fixed manufacturing overhead 55,000 Direct labour 72,500 Fixed selling expense 46,250 Variable manufacturing overhead 41,000 Variable administrative expense 48,000 Direct materials 51,500 Fixed administrative expense 44,500 Variable selling expense 49,750 Assume that direct labour is a variable cost and that there was no beginning or ending inventories.The gross margin (loss) for Pacific for the latest quarter was? Multiple Choice $(12,500). $80,000. $131,500. $135,000.
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.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2
Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $80,910 in March and rose to $93,120 in April. It costs Western Trucking $0.14 per mile in variable costs. In March, the delivery trucks were driven a total of 87,000 miles, and in April, they were driven a total of 97,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? March April Total cost $fill in the blank 1 $fill in the blank 2 B. What were the cost per mile to operate the fleet in March and April, respectively? If required, round your answers to nearest cent. March April Cost per mile $fill in the blank 3 $fill in the blank 4
Yancey, Inc. reports the following information: Units produced Units sold Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 580 units 580 units $130 per unit $10 per unit $25 per unit - $30 per unit $22,000 per year Variable selling and administrative costs Fixed selling and administrative costs $20 per unit $15,000 per year What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.) OA. $95.00 OB. $72.93 OC. $102.93 OD. $62.93
Pacific Inc. has provided the following data for the latest quarter of the most recent year: Sales $300,000 Fixed manufacturing overhead 55,000 Direct labour 72,500 Fixed selling expense 46,250 Variable manufacturing overhead 41,000 Variable administrative expense 48,000 Direct materials 51,500 Fixed administrative expense 44,500 Variable selling expense 49,750 Assume that direct labour is a variable cost and that there was no beginning or ending inventories.The total contribution margin of Pacific for the latest quarter was? Multiple Choice $87,000. $176,000. $37,250. $211,000.