Sac low + Clas Cop Hig Hig Cen Brav Gre Sca Shopping 中 agenow.com/ilmn/takeAssignment/takeAssignmentMain.do?inprogress=true eBook High-Low Method for Service Company River Runs 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 River Runs 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 February $826,400 228,000 921,400 255,000 March 651,200 165,000 April 883,400 247,000 May 740,900 198,000 949,900 268,000 June Determine the variable cost per gross-ton mile and the fixed cost. Round variable cost per gross-ton mile to two decimal places. 2.9 per gross-ton mile Variable cost $ Fixed cost s Feedback Check My Work Divide the difference between the highest and lowest transportation costs by the difference between the highest and lowest gross-ton miles. Multiply the variable unit cost by the number of miles for a month. Subtract this variable cost from the month's transportation cost. Check My Work 6 Search hp D 8 350 O P Previous Next 2:30 PM 4/9/2024 brt sc delete home ng up Dy di backspace num lock 7
Sac low + Clas Cop Hig Hig Cen Brav Gre Sca Shopping 中 agenow.com/ilmn/takeAssignment/takeAssignmentMain.do?inprogress=true eBook High-Low Method for Service Company River Runs 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 River Runs 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 February $826,400 228,000 921,400 255,000 March 651,200 165,000 April 883,400 247,000 May 740,900 198,000 949,900 268,000 June Determine the variable cost per gross-ton mile and the fixed cost. Round variable cost per gross-ton mile to two decimal places. 2.9 per gross-ton mile Variable cost $ Fixed cost s Feedback Check My Work Divide the difference between the highest and lowest transportation costs by the difference between the highest and lowest gross-ton miles. Multiply the variable unit cost by the number of miles for a month. Subtract this variable cost from the month's transportation cost. Check My Work 6 Search hp D 8 350 O P Previous Next 2:30 PM 4/9/2024 brt sc delete home ng up Dy di backspace num lock 7
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Sac
low +
Clas
Cop
Hig
Hig
Cen Brav
Gre
Sca
Shopping
中
agenow.com/ilmn/takeAssignment/takeAssignmentMain.do?inprogress=true
eBook
High-Low Method for Service Company
River Runs 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 River Runs 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
February
$826,400
228,000
921,400
255,000
March
651,200
165,000
April
883,400
247,000
May
740,900
198,000
949,900
268,000
June
Determine the variable cost per gross-ton mile and the fixed cost. Round variable cost per gross-ton mile to two decimal places.
2.9 per gross-ton mile
Variable cost $
Fixed cost s
Feedback
Check My Work
Divide the difference between the highest and lowest transportation costs by the difference between the highest and lowest gross-ton miles.
Multiply the variable unit cost by the number of miles for a month. Subtract this variable cost from the month's transportation cost.
Check My Work
6
Search
hp
D
8
350
O
P
Previous
Next
2:30 PM
4/9/2024
brt sc
delete
home
ng up
Dy di
backspace
num
lock
7
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