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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,

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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 1,200 tons of ore were extracted: "Incurred only in December. Peak activity of 2,500 tons occurred in June, resulting in mining labor/fringe benefit costs of $387,500, royalties of $281,000, and trucking and hauling outlays of $238,950. The trucking and hauling outlays exhibit the following behavior: Antioch uses the high-low method to analyze costs. Required: 1. Classify the flve costs listed in terms of their behavlor: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or semivariable. 2. Calculate the total cost for next February when 1,500 tons are expected to be extracted. 3-a. Is hauling 1,200 tons with respect to Antioch's trucking/hauling cost behavior cost-effective? 3-b. If the company plans to extract 1,200 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. Classify the five costs listed in terms of their behavior: variable, step-variable fixed, or semivariable. Calculate the total cost for next February when 1,500 tons are expected to be extracted. Is hauling 1,200 tons with respect to Antioch's trucking/hauling cost behavior cost-effective? If the company plans to extract 1,200 tons, at what number of tons can cost-effectiveness be achieved? Distingulsh between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties of the two types of fixed costs should management try to cut? Speculate as to why the company's charitable contribution cost arises only in December

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