Exercise 11-4 (Algo) Service Department Charges [LO11-4] Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the companys mine to its two steel milis - the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department totai $325,800 per year, consisting of $016 perton vartable cost and $275,800 fived cost The level of fived cost is determined by peak-penod requirements During the peak period, the Northern Plant requires 66% of the Transport Services Department's capocity and the Southern Plant requires 34% Dunng the yeas, the Tronsport Services Department actually havied 122,000 tons of ore to the Northem Plant and 67,400 tons 10 the Southern Plant The Transport Services Department incurred $366,000 in cost during the year, of which $53,900 was variable cost and 5312100 wos fred cost Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the Transport Services Department's fuxed costs should be charged to each plan? 3. How much, if any, of the Transport Services Department's actual total cost of $366,000 should be treated as a spencing variance and not charged to the plants