16. Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the companys mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $257,400 per year, consisting of $0.24 per ton variable cost and $207,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 57% of the Transport Services Departments capacity and the Southern Plant requires 43%.

During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 121,000 tons; Southern Plant, 68,200 tons. The Transport Services Department incurred $358,000 in cost during the year, of which $52,600 was variable cost and $305,400 was fixed cost.

Required:

1. How much of the $52,600 in variable cost should be charged to each plant?

2. How much of the $305,400 in fixed cost should be charged to each plant?

3. How much of the $358,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants?

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $52,600 in variable cost should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern Plant Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $305,400 in fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $358,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? Spending variance