Sierra Railroad Inc. decided to use the high-low method and operating data from the past...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Sierra Railroad Inc. 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 Sierra Railroad is gross-ton miles, which is the total number of tons multiplied by the miles moved.
Month
Transportation Costs
Gross-Ton Miles
January
$885,300
354,000
February
987,100
395,000
March
697,600
256,000
April
946,400
383,000
May
793,700
308,000
June
1,017,600
416,000
Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) fill in the blank 1 of 2$ per gross-ton mile
High-low method for a service company which is the total number of tons multiplied by the miles moved. Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $ per gross-ton mile Total fixed cost $
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
