Hebert Corporation Extracts Ore for Eight Different Companies in Quebec

question 70

Essay

Hebert Corporation extracts ore for eight different companies in Quebec. The firm anticipates variable costs of $65 per ton along with annual fixed overhead of $840,000, which is incurred evenly throughout the year. These costs exclude the following semi-variable costs, which are expected to total the amounts shown for the high and low points of ore extraction activity:
March (850 tons): $39,900.
August (1,300 tons): $46,200
Hebert uses the high-low method to analyze cost behaviour.
Required:
A. Calculate the semi-variable cost for an upcoming month when 875 tons will be extracted.
B. Calculate the total cost for that same month.
C. Hebert uses Charron Trucking Limited to haul extracted ore. Charron's monthly charges are as follows. $\begin{array} { l r } 800 - 1,099 \text { tons } & \$ 70,000 \\1,100 \text { tons } - 1,399 \text { tons } & 90,000 \\1,400 + \text { tons } & 110,000\end{array}$ 1. From a cost behaviour perspective, what type of cost is this?
If Hebert plans to extract 875 tons, is the company being very "cost effective" with respect to Charron's billing rates? Briefly discuss.

---

Definitions:

Medial Temporal Lobes

A critical region of the brain involved in the formation of new memories, spatial navigation, and the integration of sensory information.

Sensation

The process by which sensory receptors and the nervous system receive and represent stimuli from the environment.

Perception

The process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events.

Detection

The act or process of discovering or identifying the presence of a specific substance, condition, or characteristic.