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Please Help! I have been struggling for hours on this problem and no one I have reached out to has been able to help!PR 6
Please Help! I have been struggling for hours on this problem and no one I have reached out to has been able to help!PR Algo Cost Behavior and Analysis; HighLow Method LO
Antioch Extraction, which mines ore in Montana, uses a calendar year for both financialreporting and tax purposes. The following
selected costs were incurred in December, the low point of activity, when tons of ore were extracted:
Incurred only in December.
Peak activity of tons occurred in June, resulting in mining laborfringe benefit costs of $ royalties of $ and
trucking and hauling outlays of $ The trucking and hauling outlays exhibit the following behavior:
Less than tons
From to tons
From to tons
From to tons
Antioch uses the highlow method to analyze costs.
Required:
Classify the five costs listed in terms of their behavior: variable, stepvariable, committed fixed, discretionary fixed, stepfixed, or
semivariable.
Calculate the total cost for next February when tons are expected to be extracted.
a Is hauling tons with respect to Antioch's truckinghauling cost behavior costeffective?
b If the company goal is tons, what is the maximum number of tons at which costeffectiveness can be achieved?
Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties, which
the two types of fixed costs should management try to cut?
Complete this question by entering your answers in the tabs below.
Calculate the total cost for next February when tons are expected to be extracted.
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