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Help Antloch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in

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Help Antloch 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: Straight-line depreciation Charitable contributions Mining labor/fringe benefits Royalties Trucking and hauling 26,000 7,000 186,000 151,000 . 188,950 "Incurred only in December. Peak activity of 2.500 tons occurred in June, resulting in mining laborlfringe benefit costs of $387,500, royetes of $281,000. and trucking and hauling outlays of $238,950. The trucking and hauling outlays exhibit the following behavior ok Int Less than 1,200 tons From 1,200-1,699 tons From 1,700-2,199 tons From 2,200-2,699 tons $163,950 188,950 213,950 238,950 Antioch uses the high-low method to analyze costs. Required 1. Classify the five costs listed in terms of their behavior veriable, step-variable, committed fixed, discretionary 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. Given the current scenario at what number of tons can cost-effectiveness be achieved? semivariable 4. Distinguish between committed and discretionary fixed costs. If Antloch were to experience severe economic dilfficulties, which cf 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

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