Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Brazilia Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazils national monetary unit. On the day

Brazilia Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazils national monetary unit. On the day this exercise was written, the real was equivalent in value to .5092 U.S. dollar.) Month Miles Traveled by Tour Buses Maintenance Cost November 13,950 20,450 real December 16,700 18,200 January 19,450 18,350 February 23,300 18,800 March 30,800 20,450 April 12,800 17,300 Required: 1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. (Round "Variable cost per tour mile" to 3 decimal places.) Variable cost per tour mile _____ real Fixed cost per mile _____ real 2. Develop a formula to express the cost behavior exhibited by the companys maintenance cost. (Round "Variable cost per tour mile" to 3 decimal places.) Maintenance cost per mile = ____ real + _____ real X 3. Predict the level of maintenance cost that would be incurred during a month when 37,000 tour miles are driven. Maintenance cost _____ real

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students explore these related Accounting questions