High-Low Method for 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. January March April February 2,700,000 May Transportation June Costs $1,776,000 1,650,000 1,860,000 1,440,000 1,566,000 Gross -Ton Miles 560,000 Total fixed cost 1,000,000 500,000 600,000 400,000 460,000 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 $

High-Low Method for 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. January March April February 2,700,000 May Transportation June Costs $1,776,000 1,650,000 1,860,000 1,440,000 1,566,000 Gross -Ton Miles 560,000 Total fixed cost 1,000,000 500,000 600,000 400,000 460,000 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 $

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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