TIMATION METHODS Saved Help 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 Charitable contributions Mining labor/fringe benefits Royalties Trucking and hauling $ 45,586e 13,500 407,000 115,250 398,880 ces"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 From 1,850-2,349 tons From 2,350-2,849 tons From 2,850-3,349 tons $338,880 398,880 458,880 518,880 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. ESTIMATION METHODS 6 Help Save 8 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 From 1,850-2,349 tons From 2,350-2,849 tons From 2,850-3,349 tons 338,888 398,880 458,880 518,880 ok Antioch uses the high-low method to analyze costs. nces 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 2150 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. MATION METHODS Help Save 4. Distinguish between committ ed 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 Req 2 > ST ESTIMATION METHODS 2 4. Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe ed 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 Book Req 1Req 2 Calculate the total cost for next February when 2.150 tons are expected to be extracted otal cost Req 3A Req 3B Req 4 Req 5 rences K Reg 1 Req 3A ) eco the two types of fixed costs should management try to cut? 10 Req 2 Req 3A Req 3B No STIMATION METHODS 4. Distinguish committed and discretionary fixed costs.If Antioch were to experience severe ec 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 plete this question by entering your answers in the tabs below. Req 1 Req 2 Req 38 Req 4 Req 5 es If the company plans to extract 1,850 tons, at what number of tons can cost-effectiveness be achieved? K Req 3A Req 4) the two types of fixed costs should try to cut? e this Req 3A To claim tax deduction 00 promote business Req 4 2 the two types of fixed costs should try to cut? points Req 3B of the two types of fixed costs should management try to cut? ODis