Question
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
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 | $774,600 | 309,000 | ||
| February | 863,700 | 346,000 | ||
| March | 610,400 | 224,000 | ||
| April | 828,100 | 335,000 | ||
| May | 694,500 | 269,000 | ||
| June | 890,400 | 364,000 | ||
Determine the variable cost per gross-ton mile and the fixed cost.
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Primary Science Audit And Test
Authors: Jenny Byrne, Andri Christodoulou, John Sharp
4th Edition
1446282732, 978-1446282731
