1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or semivariable. Show calculations to support your answers for mining labor/fringe benefits and royalties.

2. Calculate the total cost for next February when 1,650 tons are expected to be extracted.

3. Comment on the cost-effectiveness of hauling 1,500 tons with respect to Antioch's trucking/haul-ing cost behavior. Can the company's effectiveness be improved? How?

Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,500 tons of ore were extracted: Straight-line depreciation $ 25,000 Royalties $135,000 Charitable contributions* 11,000 Trucking and hauling 275,000 Mining labor/fringe benefits 345,000 *Incurred only in December. Peak activity of 2,600 tons occurred in June, resulting in mining labor/fringe benefit costs of $598,000, royalties of $201,000, and trucking and hauling outlays of $325,000. The trucking and hauling outlays exhibit the following behavior: Less than 1,500 tons $250,000 From 1,500-1,899 tons 275,000 From 1,900-2,299 tons 300,000 From 2,300-2,699 tons . 325,000 Antioch uses the high-low method to analyze costs