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Category > Accounting Posted 22 Jul 2017 My Price 9.00

Great Plains Railroad

Great Plains 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 Great Plains 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

$1,050,000

285,000

February

1,150,000

325,000

March

1,350,000

400,000

April

1,000,000

250,000

May

1,225,000

375,000

June

1,600,000

450,000

Determine the variable cost per gross-ton mile and the fixed cost.

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Maurice Tutor
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Status NEW Posted 22 Jul 2017 11:07 PM My Price 9.00

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