Solution-Find the variable cost per gross-ton mile

Find the variable cost per gross-ton mile

Assignment Help Managerial Accounting

Reference no: EM132762651

Problem - Continental 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 Continental 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	$24,500,000	3,000,000
February	22,375,000	2,500,000
March	29,000,000	6,300,000
April	34,800,000	9,500,000
May	40,312,500	12,750,000
June	35,500,000	10,000,000

Required - Find the variable cost per gross-ton mile and the total fixed cost.

Reference no: EM132762651

Questions Cloud

Explain the big bang theory : Searching up the specific heat capacities may be required for some substances in some questions.

Managed care : Identify at least three managed care options that the organization would consider to be cost effective.

What is the contribution margin ratio for young company : Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is contribution margin ratio for Young Company

What is budgeted ending finished goods inventory for may : Meadow Company's ending finished goods inventory policy is 10% of the following month's sales. What is budgeted ending finished goods inventory for May?

Find the variable cost per gross-ton mile : The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," Find the variable cost per gross-ton mile

Prepare consolidated financial statements as at the date : Maine Ltd acquired all the issued shares, Prepare the journal entries necessary to prepare consolidated financial statements as at the date of acquisition.

Scientific method of fire investigation : Briefly describe the steps of the scientific method of fire investigation. Which step, or steps, do you think are most important?

Explain most appropriate auditors opinion for laksa imports : Using the Framework for Audit Opinions studied in this unit, explain the most appropriate auditor's opinion for Laksa Imports for the year ended 30th June 2020.

Situational leadership theory and organizational leadership : Explain why situational leadership theory is useful and relevant in developing an effective leadership culture.

User Account

All Pages

Find the variable cost per gross-ton mile

Reference no: EM132762651

Reference no: EM132762651

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT