Question

COASTAL TRUCKING, INC. Cost Correlation Worksheet Month Fuel Cost Driver Wages Miles Travelled Jan Feb Mar Apr May Jun Total Number Trucking of Trips Cost $85,610 150 $79,851 145 $78,420 137 $60,870 148 $59,014 160 $62,151 175 $64,049 181 $59,182 - 174 $65,627 148 $62,567 147 $65,510 151 $102,820 170 $845,671 1,886 $72,068 $65,731 $64,349 $47,068 $44,824 $46,827 $47,268 $42,198 $51,003 $48,973 $50,507 $87,039 $667,855 Jul Aug $13,542 $14,120 $14,071 $13,802 $14,190 $15,324 $16,781 $16,984 $14,624 $13,594 $15,003 $15,781 $177,816 21,300 20,100 19,000 14,400 13,400 14,000 14,100 12,900 15,100 14,800 15,200 24,900 199 200 Sep Oct Nov Dec Total Ratio Correlation =CORREL(Range1, Range2) -0.173 e fuel to driver wages fuel cost to miles fuel cost to trips wages to miles wages to trips 0.997 -0.189 -0.203 0.847

Which of the following statements is most appropriate for determining future costs?

A The wage cost per mile is approximately $94.28.

B The wage cost per trip is approximately $94.28.

	A.	Neither A nor B are useful in approximating future costs.
	B.	Statement B is the most appropriate.
	C.	Both statement A and B are appropriate.
	D.	Statement A is the most appropriate.

Answer 1

Given

Total Wages Cost- $ 177816

Total Trips-1886

Total Miles Travelled -199200

Wage cost per mile= Total wage cost/Number of miles= $177816/199200= $0.892 which is against $ 94.28

Wage Cost per trip= Total wage cost/Number of trips = $177816/1886 = $94.282 which is against $ 94.28

Statement be is most Appropriate is B