Solution:
Variable cost per gross ton mile = (Transportation cost at high level - Transportation cost at low level) / (High level activity - Low level activity)
= ($1,374,100 - $942,000) / (387000 - 238000)
= $2.90 per gross ton mile
Fixed costs = $1,374,100 - (387000*$2.90) = $251,800
eBook High-Low Method for Service Company O Blowing Rock Railroad decided to use the high-low method and operating...
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...
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...
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 $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...
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...
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...
EX 21-8 High-low method for service company Patriot 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 Patriot 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 $1,666,000 539,000 February $1,460,200 607,600 March $1,255,000 475,000 April $1,421,000 588,000 May $1,288,000 ...
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...
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...