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A company has a Trucking Services Department that provides transportation to haul ore from the company's mine to its two steel mills -the Northern Plant
A company has a Trucking Services Department that provides transportation to haul ore from the company's mine to its two steel mills -the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total cost cosists of $0.28 per ton variable cost and $326,000 of fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 70% of the Trucking Services Department's capacity and the Southern Plant requires 30%. During the year, the Trucking Services Department actually hauled 130,000 tons of ore to the Northern Plant and 50,000 tons to the Southern Plant. The Trucking Services Department incurred $384,000 in cost during the year, of which $54,000 was variable cost and $330,000 was fixed cost. (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) How much of the Trucking Services Department's variable costs should be charged to Northern plant? $ How much of the Trucking Services Department's fixed costs should be charged to Soouthern plant? $
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