High-low method for a service company Sierra Railroad Inc. 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 Sierra Railroad is "gross-ton miles," which is the total number of tons multiplied by the miles moved. January Transportation Costs $1,262,700 Gross-Ton Miles 360,000 February 1,407,900 403,000 March 995,000 261,000 April 1,349,800 390,000 May 1,132,100 314,000 June 1,451,400 424,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) Total fixed cost $ per gross-ton mile

High-low method for a service company Sierra Railroad Inc. 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 Sierra Railroad is "gross-ton miles," which is the total number of tons multiplied by the miles moved. January Transportation Costs $1,262,700 Gross-Ton Miles 360,000 February 1,407,900 403,000 March 995,000 261,000 April 1,349,800 390,000 May 1,132,100 314,000 June 1,451,400 424,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) Total fixed cost $ per gross-ton mile

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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