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Q1: Calculate the total cost for next February when 1,700 tons are expected to be extracted. Please show calculations Q2: Given the current scenario at
Q1: Calculate the total cost for next February when 1,700 tons are expected to be extracted. Please show calculations Q2: Given the current scenario at what number of units cost effectiveness can be achieved?
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 1,400 tons of ore were extracted Straight-line depreciation 30,000 Charitable contributions* Mining labor/fringe benefits 315,000 Royalties Trucking and hauling 12.000 140,000 280,000 *Incurred only in December. Peak activity of 2,700 tons occurred in June, resulting in mining laborfringe benefit costs of $607,500, royalties of $224,500, and trucking and hauling outlays of $360,000. The trucking and hauling outlays exhibit the following behavior: Less than 1,400 tons From 1,400-1,899 tons From 1,900-2,399 tons From 2,400-2,899 tons $240,000 280,000 320,000 360,000Step by Step Solution
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