Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
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 2,150 tons are expected to be extracted. 3-a. Is hauling 1,850 tons with respect to Antioch's trucking/hauling cost behavior cost-effective? 3-b. If the company plans to extract 1,850 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step- fixed, or semivariable. a Straight-line depreciation b Charitable contributions C. Mining labor/fringe benefits d Royalties e. Trucking and hauling 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 1,850 tons, at what number of tons can cost-effectiveness be achieved? Number of tons \fComplete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Speculate as to why the company's charitable contribution cost arises only in December. To demonstrate social responsibility OTo claim tax deduction To promote business Antioch 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 1,850 tons of ore were extracted: Straight- line depreciation $ 45,500 Charitable contributions* 13, 500 Mining labor/fringe benefits 407, 090 Royalties 115, 250 Trucking and hauling 398 , 880 *Incurred only in December. Peak activity of 3,150 tons occurred in June, resulting in mining labor/fringe benefit costs of $693,000, royalties of $160,750, and trucking and hauling outlays of $518,880. The trucking and hauling outlays exhibit the following behavior: Less than 1, 850 tons $338, 880 From 1, 850-2, 349 tons 398 , 880 From 2, 350-2, 849 tons 458, 880 From 2, 850-3, 349 tons 518, 880 Antioch uses the high-low method to analyze costs

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

Step: 3

blur-text-image

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

Financial Accounting Plus

Authors: Robert Libby, Patricia Libby, Daniel Short

7th Edition

0077480015, 9780077480011

More Books

Students also viewed these Accounting questions