Blowing rock railroad decided to use the high-low method, Ask an Expert

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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	$1,384,400	307,000
February	1,543,600	343,000
March	1,090,900	222,000
April	1,479,900	332,000
May	1,241,200	267,000
June	1,591,300	361,000

Determine thevariable cost per gross-ton mile and thefixed cost.

Variable cost: (Round to two decimal places.)	$ per gross-ton mile
Total fixed cost:

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91881557

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