Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. [The real is Brazil's national monetary unit. On the
Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. [The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.] Month November December January February March April Miles Traveled by Tour Buses 14,250 16,900 Cost 18,100 real 18,400 19,550 18,550 23,500 19,000 31,000 19,660 13,000 17,500 Required: 1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. 2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost. 3. Predict the level of maintenance cost that would be incurred during a month when 39,000 tour miles are driven. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. Note: Round "Variable cost per tour mile" to 3 decimal places. Variable cost per tour mile Fixed cost per month 0.117 real 16,033 real
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 HighLow Method Well use the highlow method to estimate the variable cost per tour mile traveled an...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started