Given the current scenario at what number of units cost

Assignment Help Accounting Basics

Reference no: EM13485159

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*		12,000
Mining labor/fringe benefits		315,000
Royalties		140,000
Trucking and hauling		280,000

*Incurred only in December.

Peak activity of 2,700 tons occurred in June, resulting in mining labor/fringe 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	$	240,000
From 1,400-1,899 tons		280,000
From 1,900-2,399 tons		320,000
From 2,400-2,899 tons		360,000

Lone Mountain Extraction uses the high-low method to analyze costs.

Given the current scenario at what number of units cost effectiveness can be achieved?

Reference no: EM13485159

Questions Cloud

The mediterranean sea exchanges water with the atlantic : the mediterranean sea exchanges water with the atlantic ocean. fresh water inflow to the mediterranean is approximately

Discuss it and have this alternative and the reasons for : dreamjay aviation has called on your business consulting group again for advice. bradley has decided that they should

In 2010 the moncrief company purchased from jim lester the : in 2010 the moncrief company purchased from jim lester the right to be the sole distributor in the western states of a

After the amount due on a sale of 28000 term 210 neom is : after the amount due on a sale of 28000 term 210 neom is received from a customer within the discount period the seller

Given the current scenario at what number of units cost : lone mountain extraction which mines ore in idaho uses a calendar year for both financial-reporting and tax purposes.

Discuss at least two reasons why a firm might want to offer : discuss at least two reasons why a firm might want to offer seasonal datings to its

Compute the number of sales units required to earn a net : scholarpak company produced and sold 76000 backpacks during the year just ended at an average price of 36.00 per unit.

Determine the annual financing cost of a 6-month 182 day : determine the annual financing cost of a 6-month 182 day 20000 discounted bank loan at a stated annual interest rate

Last year bell-bottom jeans were fashionable and this year : last year bell-bottom jeans were fashionable and this year boot cut jeans are are in style. a retail companys inventory

User Account

All Pages