Managerial Accounting: E4-8 Blowing Rock Railroad decided to use the high-low method
Reminder: There are several versions of this question wherein the amounts and other information might have been changed. Please make sure you REVIEW your homework questions and COMPARE to our tutorial questions to make sure this is what you need. Managerial Accounting Ex4-8 High-low method for service company Blowing Rock 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 Blowing Rock 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 760,000 275,000 February 850,000 310,000 March 600,000 200,000 April 810,000 300,000 May 680,000 240,000 June 875,000 325,000 Determine the variable cost per gross-ton mile and the fixed cost.
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