Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Peak activity of 3,200 tons occurred in June, resulting in mining labor/fringe benefit costs of $720,000, royalties of $148,000, and trucking and hauling outlays of

image text in transcribedimage text in transcribed
Peak activity of 3,200 tons occurred in June, resulting in mining labor/fringe benefit costs of $720,000, royalties of $148,000, and trucking and hauling outlays of $542,875. The trucking and hauling outlays exhibit the following behavior: Less than 1, 900 tons $355, 375 From 1, 900-2,399 tons 417,875 From 2, 400-2, 899 tons 480,375 From 2, 900-3, 399 tons 542, 875 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 2,200 tons are expected to be extracted. 3-a. Is hauling 1,900 tons with respect to Antioch's trucking/hauling cost behavior cost-effective? 3-b. If the company plans to extract 1,900 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. x Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Reg 4 Reg 5 Calculate the total cost for next February when 2,200 tons are expected to be extracted. Total cost 823,500 X * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Reg 4 Req 5 If the company plans to extract 1,900 tons, at what number of tons can cost-effectiveness be achieved? Number of tons 2,399 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick

6th Edition

1259105482, 9780071338820

More Books

Students also viewed these Accounting questions