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 1,850 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling *Incurred only in December. $ 45,500 13,500 407,000 115,250 398,880 Peak activity of 3,150 tons occurred in June, resulting in mining labor/fringe benefit costs of $693,000, royalties of $160,750, and trucking and hauling outlays of $518,880. The trucking and hauling outlays exhibit the following behavior: Less than 1,850 tons From 1,850-2,349 tons From 2,350-2,849 tons From 2,850-3,349 tons $338,880 398,880 458,880 518,880 Antioch uses the high-low method to analyze costs. Required: 1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or semivariable. 2. Calculate the total cost for next February when 2,150 tons are expected to be extracted. 3-a. Is hauling 1,850 tons with respect to Antioch's trucking/hauling cost behavior cost-effective? 3-b. If the company plans to extract 1,850 tons, at what number of tons can cost-effectiveness be achieved? 4. Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties, which of the two types of fixed costs should management try to cut? 5. Speculate as to why the company's charitable contribution cost arises only in December. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step fixed, or semivariable. a. Straight-line depreciation b. Charitable contributions c. Mining labor/fringe benefits d. Royalties e. Trucking and hauling < Req 1 Req 2 >