Miss River 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 Miss River 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 $994,800 274,000 February 1,109,200 306,000 March 783,900 198,000 April 1,063,500 296,000 May 891,900 238,000 June 1,143,500 322,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost per gross-ton mile Fixed cost

Miss River 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 Miss River 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 $994,800 274,000 February 1,109,200 306,000 March 783,900 198,000 April 1,063,500 296,000 May 891,900 238,000 June 1,143,500 322,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost per gross-ton mile 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
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.
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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
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