Exercise 11-4 (Algo) Service Department Charges (L011-4) 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 $332,600 per year, consisting of $0.21 per ton variable cost and $282,600 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% During the year, the Transport Services Department actually hauled 126,000 tons of ore to the Northern Plant and 66,200 tons to the Southern Plant. The Transport Services Department incurred $365,000 in cost during the year, of which $52,500 was variable cost and $312,500 was fixed cost Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the $312,500 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $365,000 be treated as a spending variance and not charged to the plants? Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the $312,500 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $365,000 be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 How much of the Transport Services Department's variable costs should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern Plant Rented 1 Required 2 > Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the $312,500 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $365,000 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 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 Should any of the Transport Services Department's actual total cost of $365,000 be treated as a spending variance and not charged to the plants? Spending vanance