Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The malis Brazi's national monetaryunit. On the day this exercise was written, the real was equivalent in value to 0.2545 US dollar)PonshNovemberDecemberJanuaryFebruaryMarchAprilMiles Traveledby Tour Rates14,10014,80019,50023,40030,90012,900CONT16,000 real18,30018,45018,90021,00017,400Required:1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost3. Predict the level of maintenance cost that would be incurred during a month when 38.000 tour miles are driven.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month, (Round "Variablecost per tour mile" to 3 decimal places)Variable cost per tour meFixed cost per monthreal[realRequired 2 > Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season (The real is Brazil's national monetaryunit. On the day this exercise was written, the real was equivalent in value to 0.2545 US dollar)Miles TraveledRovenberBecemberJanuaryFebruaryMarchApril14,30014,80019,50023,40030,90012.900Required:1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost.3. Predict the level of maintenance cost that would be incurred during a month when 38,000 tour miles are driven.Complete this question by entering your answers in the tabs below.MonthNovemberDecemberJanuaryFebruaryCost18,000 real18,30018,450***18,90021,00017,400MarchAprilRequired 1RequiredDevelop a formula to express the cost behavior exhibited by the company's maintenance cost. (Round "Variable cost per tourmile" to 3 decimal places.)Maintenance cost per monthRequired 3Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazil's national monetaryunit. On the day this exercise was written, the real was equivalent in value to 0.2545 US dollar)Miles Traveledby Tour Buses14,10016,40019,50023,40030,90012,900Required:1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month.2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost.3. Predict the level of maintenance cost that would be incurred during a month when 38,000 tour miles are drivenComplete this question by entering your answers in the tabs below.Required 1 Required 2 Required 34Predict the level of maintenance cost that would be incurred during a month when 38,000Maintenance costreal< Required 2miles are driven

Cost accounting refers to a process in which cost is assigned to various variables including…

Answered: Rio Bus Tours has incurred the…

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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Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
A company needs a 33 tonnage refrigeration system. Knowing that a 20 tonnage similar refrigeration system only cost $100,000 15 years ago when the approximate cost index was 150, and that the cost index now is 370. The cost-capacity factor for a refrigeration system is 0.53. 1) estimate the required cost for the 33 tonnage refrigeration system in current year. 2) If borrowing the amount of required money is from a bank in current year and the bank interested rate is 6% per year, find the equivalent value (FW) as a single payment payed back to the bank in 15 years.
Cost Reimbursement (break-even) 13. It costs $3400 for a first-class roundtrip from Boston to London (6560 miles) and there are 3 trips per week. Assuming an MARR of 15% and the following data, how many passengers must fly per trip on average? Item Cost $12,000K 15 years $2000K $225K $0.67 Initial Cost Service Life Salvage Value Annual Crew (labor) Fuel cost per mile Catering per person Fee per landing Maintenance per yr Insurance per yr $75 $250 $237K $166K
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Volume and pricing Dim Witt is the county commissioner of Clueless County. He decided to institute tolls for local ferry boat passengers. After the tolls had been in effect for four months, Astra Astute, county accountant, noticed that collecting $1,450 in tolls incurred a daily cost of $2,000. The toll is $0.50 per passenger. a. How many people are using the ferry boats each day? 2,900 b. (1) If the $2,000 cost is entirely fixed, how much must each passenger be charged for the toll process to break even? Note: Round your answer to two decimal places (for example, round $4.655 to $4.66). $0.69 (2) How much must each passenger be charged for the toll process to make a profit of $250 per day? Note: Round your answer to two decimal places (for example, round $4.655 to $4.66). $ 0.78 c. Assume that only 80 percent of the $2,000 is fixed and the remainder varies by passenger. If the toll is raised to $0.60 per person, passenger volume is expected to fall by 10 percent. If the toll is raised…
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A factory manager is considering the purchase of one of the following two production equipment. Cash flow estimates for equipment A are in year-zoro dollars while those of equipment B are in actual dollars Equipment A (year-zero S) Equipment B (actual $) $1,200 Initial investment $9,500 Net annual revenue $3.000 $4,000 $0 Market value at end of useful life Useful ife, years 11 11 The manager uses a market interest rate of 12% per year. If inflation rate is expected to average 5.66% per year over the next several years, determine the PW of each equipment. 1. The PW of Equipment A is OA. S14,161 OB. $14,578 OC. $12,500 OD. $0,313 2. The PW of Equipment B is O A. $20,347 OB. S15,200 OC. $20,903 OD. $12,651

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