VariableCosting Income Statement for a Service CompanyEast Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:Amount Cost BehaviorCostLabor costs for loading and unloading railcarsFuel costs$175,582 Variable460,226 Variable267,228 Variable118,327Variable194,400Fixed129,600Fixed$1,345,3631Operating statistics from the management information system reveal the following for April:Atlanta/BaltimoreBaltimore/ Pittsburgh/Pittsburgh Atlanta12,83510,200425$600Train crew labor costsSwitchyard labor costsTrack and equipment depreciationMaintenanceNumber of train-milesNumber of railcarsRevenue per railcarLine Item DescriptionRevenuesVariable costs:Labor costs for loading and unloading railcarsFuel costsTrain crew labor costsSwitchyard labor costsTotal variable costs2,160$275Contribution marginContribution margin ratio14,0801,232$440a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin.East Coast Railroad CompanyContribution Margin by RouteFor the Month Ended April 30Activity Rate$46.00 per railcar12.40 per train-mile7.20 per train-mile31.00 per railcar%Total37,1153,817Atlanta/ Baltimore/ Pittsburgh/Baltimore Pittsburgh Atlanta96Totalgoodboldgooolblblå%6%

ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…

-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: vior Activity Rate $46.00 per railcar 12.40 per train-mile 7.20 per train-mile 31.00 per railcar wing for April: Total 37,115 3,817 any for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. Pittsburgh/ Atlanta Tota %6

-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: vior Activity Rate $46.00 per railcar 12.40 per train-mile 7.20 per train-mile 31.00 per railcar wing for April: Total 37,115 3,817 any for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. Pittsburgh/ Atlanta Tota %6

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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