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Sierra Railroad Inc. decided to use the high-low method and operating data from the past...

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Accounting

Sierra Railroad Inc. 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 Sierra Railroad is gross-ton miles, which is the total number of tons multiplied by the miles moved.

Month Transportation Costs Gross-Ton Miles
January $885,300 354,000
February 987,100 395,000
March 697,600 256,000
April 946,400 383,000
May 793,700 308,000
June 1,017,600 416,000

Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) fill in the blank 1 of 2$ per gross-ton mileimage

High-low method for a service company which is the total number of tons multiplied by the miles moved. Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $ per gross-ton mile Total fixed cost $

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