Maurice Tutor

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Category > Accounting Posted 13 Aug 2017 My Price 7.00

Blowing Rock Railroad

Blowing Rock 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 Blowing Rock 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 $1,384,400   307,000  
February 1,543,600   343,000  
March 1,090,900   222,000  
April 1,479,900   332,000  
May 1,241,200   267,000  
June 1,591,300   361,000  

Determine thevariable cost per gross-ton mile and thefixed cost.

Variable cost: (Round to two decimal places.) $ per gross-ton mile
Total fixed cost: $

 

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Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 10:08 AM My Price 7.00

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