The following activity rates are associated with moving rail cars by train: $4 per gross ton mile;

Question:

The following activity rates are associated with moving rail cars by train: $4 per gross ton mile; $50 per rail car switch; $200 per rail car. A train with 20 rail cars traveled 100 miles.

Each rail car carried 10 tons of product. Each rail car was switched two times. What is the total cost of moving this train?

a. $5,400

b. $10,000

c. $44,100

d. $86,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial And Managerial Accounting

ISBN: 9781337902663

15th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William B. Tayler

Question Posted: