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 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 $846,300 356,000 February 943,600 398,000 March 666,900 258,000 April 904,700 385,000 May 758,800 310,000 June 972,800 419,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost

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 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 $846,300 356,000 February 943,600 398,000 March 666,900 258,000 April 904,700 385,000 May 758,800 310,000 June 972,800 419,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost

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Description: High-Low Method for a Service CompanyBoston 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

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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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 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 $1,324,700 294,000 February 1,476,900 329,000 March 1,043,800 213,000 April 1,416,000 318,000 May 1,187,600 256,000 June 1,522,600 346,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) %$4 per gross-ton mile Total fixed cost Check My Work 4 more Check My Work uses remaining. Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Gra %24 %24
Question 1: Estimation of WC The management of ABC Company Limited has called for a statement showing the WC needed to finance a level of activity of 3,00,000 units of output per year. The cost statement of the company's product, for the above-mentioned activity level, is given below: Cost per unit TK 20 Direct material Direct labor Overhead Total cost Target profit Target selling price 5 TK 15 40 10 TK 50 1. Past records show that raw materials are held in stock, on an average, for two (2) months; 2. Work in process (WIP) will approximate to 15 days production; 3. Finished goods remain in warehouse on average for 1 month; 4. Suppliers for materials extend one month's credit; 5. Two months credit is normally allowed to customers (assume all sales are on credit) 6. A minimum cash balance of TK 5,00,000 is expected to be maintained; 7. The production pattern is assumed to be even during the year. Prepare a Statement of Working Capital Requirements
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
Variable Costing Lindquist Company has the following information for February: Sales $690,000 Variable cost of goods sold 324,300 Fixed manufacturing costs 117,300 Variable selling and administrative expenses 62,100 Fixed selling and administrative expenses 41,400 Determine the following for Lindquist Company for the month of February: a. Manufacturing margin b. Contribution margin c. Operating income 365,700
High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $219,590 2,710 units February 168,480 1,680 March 262,080 4,080 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $ b. Total fixed cost
8) Paine Company wishes to determine the fixed portion of its electrical costs (a mixed cost). Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows: January February March Machine-hours Electrical cost 33,000 31,000 34,000 A) $283. B) $375. (C) $327. D) $408. $600 $585 $610 Using the high-low method, the fixed portion of the company's electrical costs would be estimated to be closest to:
Exercises 1. On December 31, the end of the first year of operations, Frankensteiner Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Frankensteiner Inc. Variable Costing Income Statement For the Year Ended December 31, 2020 Sales $ 9,600,000 Variable cost of goods sold: Variable cost of goods manufactured $ 5,376,000 Inventory, December 31 Total variable cost of goods sold (366,000) 5,010,000 2$ Manufacturing margin 4,590,000 Total variable selling and admin. expenses 1,250,000 $ Contribution margin 3,340,000 Fixed Costs Fixed manufacturing costs 1,464,000 Fixed selling and admin. Expenses 890,000 Total fixed costs 2,354,000 Income from operations 986,000 Determine the unit cost of goods manufactured, based on (A) the variable costing concept and (B) the absorption costing concept.
High-Low Method for a Service Company 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. January February March April May June Transportation Costs Gross-Ton Miles $536,200 225,000 597,800 252,000 422,500 163,000 573,200 244,000 480,700 196,000 616,300 265,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost pe
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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 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 $1,061,200 303,000 February 1,183,200 338,000 March 836,200 219,000 April 1,134,400 328,000 May 951,400 263,000 June 1,219,800 356,000 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 $fill in the blank 2
High-Low Method The manufacturing costs of Heather Industries for three months of the year are provided below. Total Costs Production January $297,360 1,540 units February 379,960 2,880 March 462,560 4,340 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
Assume a company has variable manufacturing costs of $20 per unit and total fixed manufacturing overhead per period is $150,000. In its first year of the operations, the company produced 12.500 units and sold 10,300 units and reported absorption costing net operating income of $38,000. What is the company's variable costing net operating income in its first year of operations? Multiple Choice $27,600 $47,600 $21,600 $11,600