Lone Mountain Extraction, which mines ore in Idaho, 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 1,550 tons of ore were extracted: Straight-line depreciation Charitable contributions Mining labor/fringe benefits Royalties Trucking and hauling S 38,500 10,500 294,500 142,250 295,410 Incurred only in Peak activity of 2,850 tons occurred in June, resulting in mining labor/fringe benefit costs of S541,500, royalties of $228,750, and trucking and hauling outlays of $385,410. The trucking and hauling outlays exhibit the following behavior Less than 1,550 tonsS250,410 From 1,550-2,049 tons 295,410 From 2,050-2,549 tons 340,410 From 2,550-3,049 tons 385,410