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 | $669,600 | 243,000 | ||
February | 746,500 | 272,000 | ||
March | 527,600 | 176,000 | ||
April | 715,700 | 263,000 | ||
May | 600,300 | 212,000 | ||
June | 769,600 | 286,000 |
Determine the variable cost per gross-ton mile and the total fixed cost.
Variable cost (Round to two decimal places.) | $ per gross-ton mile |
Total fixed cost | $ |
Solution:
Variable cost per gross ton mile = (Cost at high level - Cost at low level) / (High level activity - Low level activity)
= (($769,600 - $527,600) / (286,000 - 176,000) = $242,000 / 110000 = $2.20 per gross ton mile
Total fixed costs = $769,600 - (286000*$2.20) = $140,400
Boston Railroad decided to use the high-low method and operating data from the past six months...
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 $1,319,100 329,000 February 1,470,700 368,000 March 1,039,400 238,000 April 1,410,100 356,000 May 1,182,600 286,000 June 1,516,200 387,000 Determine the variable...
3 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 $949,500 316,000 February 1,058,700 353,000 March 748,200 229,000 April 1,015,000 342,000 May 851,300 275,000 June 1,091,400 372,000 Determine the...
High-Low Method for a 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. Transportation Costs Gross-Ton Miles January $1,022,500 292,000 1,140,000 326,000 805,700 211,00033 4,093,000 316,000 916,700 254,000 125.300 343,000 Determine the...
High-Low Method for a 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. Transportation Costs Gross-Ton Miles January 292,000 $620,800 692,200 February 326,000 March 489,200 211,000 316,000 April May 663,600 556,600 713,600...
Continental 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 Continental 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 $24,500,000 3,000,000 February 22,375,000 2,500,000 March 29,000,000 6,300,000 April 34,800,000 9,500,000 May 40,312,500 12,750,000 June 35,500,000 10,000,000 Determine the variable...
High-Low Method for a 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. Transportation Costs Gross-Ton Miles January $999,300 285,000 February 1,114,100 318,000 March 787,400 206,000 April 1,068,200 308,000 May 895,900 248,000...
High-Low Method for a 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. Transportation Costs Gross-Ton Miles January $981,900 373,000 February 417,000 March 270,000 1,094,700 773,700 1,049,600 880,300 April 404,000 325,000 May...
2'1-3 EXercises & Problems High-Low Method for a 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. Transportation Costs Gross-Ton Miles January $1,636,500 373,000 February 1,824,600 417,000 March 1,289,500 270,000 April 1,749,300...
eBook Show Me How Calculator High-Low Method for a 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. Transportation Costs GrossTon Miles $559,700 263,000 February 624,000 294,000 March 441,000 190,000 April 598,300...
eBook High-Low Method for Service Company O Blowing Rock Railroad decided to use the high-low method and operating data from the past stx months to estimate the fixed and variable components of transportation costs. The activity base used by Blowing Rock Railroad is a measure of railroad operating activity, termed "gross-ton miles, which is the total number of tons multiplied by the mles moved. Transportation Costs Gross-Ton Miles 329,000 $1,195,500 January 1,332,900 368,000 February 238.000 942,000 March 356.000 1,277,900 April...