Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 7 Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company's mine to its two

image text in transcribedimage text in transcribedimage text in transcribed

Check my work 7 Hannibal Steel Company has a Transport Services Department that provides trucks 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 $208,400 per year, consisting of $0.21 per ton variable cost and $158,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 58% of the Transport Services Department's capacity and the Southern Plant requires 42%. 5 points During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 124,000 tons; Southern Plant, 69,300 tons. The Transport Services Department incurred $378,000 in cost during the year, of which $53,300 was variable cost and $324,700 was fixed cost. eBook Required: 1. How much of the $53,300 in variable cost should be charged to each plant? Print 2. How much of the $324,700 in fixed cost should be charged to each plant? 3. How much of the $378,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? References Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 How much of the $53,300 in variable cost should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern Plant Required 1 Required 2>

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Global Approach

Authors: Sidney J. Gray, Belverd E. Needles

1st Edition

9780395839867

More Books

Students also viewed these Accounting questions

Question

What are the responsibilities of the position?

Answered: 1 week ago

Question

is particularly relevant to these issues.)

Answered: 1 week ago