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Home Q & A Board Other Fields Homework Help Business Accounting
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kristen299 kristen299
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A year ago
Stegman, Ltd., provides nationwide passenger train service on 21,000 miles of routes. Selected operating data for fiscal 2021 are shown below.

Fuel ExpensePassengersPassengerTrain Miles
Month(000s)(000s)Miles (000s)(000s)
October 2020$20,0752,145450,8573,098
November 202022,0372,154451,4483,091
December 202022,4352,180373,5333,141
January 202123,6132,151377,4383,178
February 202121,9312,136461,0882,825
March 202126,2042,174458,7623,175
April 202124,6982,207470,3113,096
May 202124,8322,296492,4293,197
June 202123,2392,291540,6553,076
July 202124,4812,414578,1333,191
August 202125,4592,430563,9863,315
September 202125,0212,148448,2633,066

Required:
a.The above data provide three possible activity measures that could influence fuel
expense.
Use the high-low method to develop a cost formula for fuel expense for each of the
three measures.
b.Do any of the cost formulas you developed in (a) appear to be a poor choice for
estimating
future train operations expense? Why?
c.Which formula do you think will make the most accurate predictions? Why?
Textbook 
Managerial Accounting

Managerial Accounting


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dangoondangoon
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A year ago
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kristen299 Author
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A year ago
Thanks for your help!!
derya1234
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Yesterday
Just got PERFECT on my quiz
Chaldoren
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2 hours ago
Correct Slight Smile TY
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