-dPR 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, thelow point of activity, when 1,500 tons of ore were extracted:Straight-line depreciationCharitable contributions*Mining labor/fringe benefitsRoyaltiesTrucking and hauling$ 35,00010,000277,500145,000279,915*Incurred only in December.Peak activity of 2,800 tons occurred in June, resulting in mining labor/fringe benefit costsof $518,000, royalties of $236,000, and trucking and hauling outlays of $364,915. Thetrucking and hauling outlays exhibit the following behavior:Less than 1,500 tons.From 1,500 to 1,999 tonsFrom 2,000 to 2,499 tonsFrom 2,500 to 2,999 tons$ 237,415279,915322,415364,915Antioch 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 beextracted.3-a. Is hauling 1,500 tons with respect to Antioch's trucking/hauling cost behavior cost-offentliin?

Cost behavior analysis is an analysis undertaken by the management of the organization to get to…

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 *Incurred only in December. $ 35,000 10,000 277,500 145,000 279,915

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 *Incurred only in December. $ 35,000 10,000 277,500 145,000 279,915

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 35E: Cost Behavior, Classification Smith Concrete Company owns enough ready-mix trucks to deliver up to...

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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 1,800 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling *Incurred only in December. Peak activity of 3,100 tons occurred in June, resulting in mining labor/fringe benefit costs of $666,500, royalties of $173,000, and trucking and hauling outlays of $495,385. The trucking and hauling outlays exhibit the following behavior: Less than 1,800 tons From 1,800 to 2,299 tons From 2,300 to 2,799 tons From 2,800 to 3,299 tons 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…
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: Already answered first part need help with # 4 and 5 2. Total cost for 1,650 tons: $823,500 Straight-line depreciation ..........................$ 25,000 Royalties .....................................$135,000 Charitable contributions* ...........................11,000 Trucking and hauling ..................275,000 Mining labor/fringe benefits .......................345,000. *Incurred only in December Peak activity of 2,600 tons occurred in June, resulting in mining labor/fringe benefit costs of $598,000, royalties of $201,000, and trucking and hauling outlays of $325,000. The trucking and hauling outlays exhibit the following behavior: Less than 1,500 tons .................................................$250,000 From 1,500–1,899 tons…
Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,500 tons of ore were extracted: Straight-line depreciation ..........................$ 25,000. Royalties .....................................$135,000 Charitable contributions* ...........................11,000. Trucking and hauling ..................275,000 Mining labor/fringe benefits .......................345,000 *Incurred only in December. Peak activity of 2,600 tons occurred in June, resulting in mining labor/fringe benefit costs of $598,000, royalties of $201,000, and trucking and hauling outlays of $325,000. The trucking and hauling outlays exhibit the following behavior: Less than 1,500 tons .................................................................................$250,000 From 1,500–1,899 tons…
The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $119,000 at the beginning of the year was expected to deliver 202,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Multiple Choice C $17,144 Tons Delivered: How much truck depreciation should be allocated to Site A? Note: Do not round Intermediate calculations. Round your answer to the nearest dollar. $1,296 $1,190 A 2,200 None of the answers are correct. B 3,700 C 4, 200 D 1,700
The following schedule reflects the incremental costs and revenues for acapital project. The company uses straight-line depreciation. The interestexpense reflects an allocation of interest on the amount of this investment,based on the company’s weighted average cost capital:Revenues $650,000Direct costs $270,000Variable overhead 50,000Fixed overhead 20,000Depreciation 70,000General & administrative 40,000Interest expense 8,000458,000Net profit before taxes $192,000══════The annual cash flow from this investment, before tax considerations, would be:
Answer ASAP Alien Ltd commenced previous metal mining operations in Western Australia on 1 July 2016. During the first year of exploration it incurred the following costs (in millions of dollars) in relation to 3 areas: Sun 20 Moon 18 Star 24 Total Costs 52 In 2018 uranium was discovered at site Star. Explorations continued at site Sun, however exploration at site Moon was not considered to be economically viable and was abandoned. In relation to exploratory expenditure 35% relates to intangibles and the remainder to property, plant and equipment. Up until 30 June 2018, the company incurred development costs of $2 million in relation to infrastructure and property, plant and equipment for site Star. Costs will be written off on a production basis. A further $1.5 million in exploration and evaluation costs were incurred at site Sun. On 1 July 2018 production commenced at site Star. It is estimated that the site contains 80,000 tonnes of uranium. The current sale price is $3,500 per…
9. XYZ Company quarries limestone, crushes it, and sells it to be used in road building. XYZ paid P10,000,000 for a certain quarry. The property can be sold for P3,000,000 after production ceases. Estimated reserves 10,000,000; Tons quarried through December 31, 20X4 4,000,000; Tons quarried in 20X5 1,500,000. An engineering study performed in 20X5 indicated that as of January 1, 20X5, 7,500,000 tons of limestones were available. 30. Assume that the materials and labor cost incurred during 20X5 is 2,160,000 and that 1,000,000 tons were sold during the year at P5.00, Gross Profit for the year is?
The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Tons Delivered: Multiple Choice $20,246 $1,683 How much truck depreciation should be allocated to Site A? Note: Do not round Intermediate calculations. Round your answer to the nearest dollar. $1,250 2,800 None of the answers are correct. B 4,300 4,800 2,300
Full Cost versus Successful Efforts Method. During the current year, The Calgary Oil & Gas Company began an exploration project in Montana. The company had paid $1,500,000 for the drilling rights on a tract of 500 acres of land. The company then spent another $180,000 building roads and containment ponds. The project called for eight exploratory wells to be drilled at an expected cost of $130,000 per well. The ﬁrst eight wells drilled were found to be "dry" (lacking commercially viable quantities of oil or gas); however, both the ninth and tenth wells drilled contained commercially viable quantities of oil condensate. Consequently, two additional development wells were drilled at a cost of $140,000 per well. For income tax reporting purposes, should the company use the full cost method or the successful efforts method? which method should the company use when reporting its financial results to its shareholders? why?
Full Cost versus Successful Efforts Method. During the current year, The Calgary Oil & Gas Company began an exploration project in Montana. The company had paid $1,500,000 for the drilling rights on a tract of 500 acres of land. The company then spent another $180,000 building roads and containment ponds. The project called for eight exploratory wells to be drilled at an expected cost of $130,000 per well. The first eight wells drilled were found to be “dry” (lacking commercially viable quantities of oil or gas); however, both the ninth and tenth wells drilled contained commercially viable quantities of oil condensate. Consequently, two additional development wells were drilled at a cost of $140,000 per well. Calculate the capitalized cost of Calgary’s oil reserves under (a) the full cost method and (b) the successful efforts method
At year-end XYZ Company has an in-process construction project with costs totaling $10,000,000. It has billed $8,000,000 on these projects and collected $6,500,000. As it employs the percentage-of-completion method it has also recognized a total of $1,000,000 in profit to date on these contracts. The XYZ balance sheet would report: Selected Answer: Incorrect Asset values totaling $1,500,000 for these projects. Answers: Correct Asset values totaling $4,500,000 for these projects. Asset values totaling $3,500,000 for these projects. Asset values totaling $1,500,000 for these projects. Liabilities values totaling $1,000,000 for these projects.
I need handwritten all values are clear please skip if can't do by hand