PR 6-37 (Algo) Cost Behavior and Analysis; High-Low Method (LO 6- 2, 6-4, 6-5) 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 1,500 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling $ 35,000 10,000 277,500 145,000 279,915 *Incurred only in December. Peak activity of 2,800 tons occurred in June, resulting in mining labor/fringe benefit costs of $518,000, royalties of $236,000, and trucking and hauling outlays of $364,915. The trucking and hauling outlays exhibit the following behavior: Less than 1,500 tons From 1,500 to 1,999 tons From 2,000 to 2,499 tons From 2,500 to 2,999 tons $ 237,415 279,915 322,415 364,915 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 1,800 tons are expected to be extracted. 3-a. Is hauling 1,500 tons with respect to Antioch's trucking/hauling cost behavior cost- effective?

PR 6-37 (Algo) Cost Behavior and Analysis; High-Low Method (LO 62,64,65) 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 1,500 tons of ore were extracted: *Incurred only in December. Peak activity of 2,800 tons occurred in June, resulting in mining labor/fringe benefit costs of $518,000, royalties of $236,000, and trucking and hauling outlays of $364,915. The trucking and hauling outlays exhibit the following behavior: 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 1,800 tons are expected to be extracted. 3-a. Is hauling 1,500 tons with respect to Antioch's trucking/hauling cost behavior costneffotion