Exercise 11-4 (Algo) Service Department Charges [LO11-4] Hannited Steer Compamy hass a Trantport Services Depariment that peovides trucles to haul ore from the compery/s mine to its firc 3teed mis-the Northeriflant and the Southern Plart. Eudoeted costs for the Transport Services Depaitenent total \$33tobo por year, consiting of so99 per ton yarible cost and $291,000 fored cost. The level of foud cost is defermined by peak-period iequirechenth During the peak poriod, the Northem Ptant requires 6536 of the Transpon Services Deportments capacity and the Southern Piant reguires 359 Southem Plart. The Transport Services Departinent incurred 5366.000 in cost during the yeac, of which 353 , 800 was varlable icost and 5.212. 200 wis find cost Reguired: 1. Haw much of the Transport Servees Departments variable costs sheuld be charged to each plant? 2. How much of the Trantport Services Departments fxed costs should be charged fo each plant? 3. How mich, if any. of the Transporf Services Departreents actual total cost of 5366.000 should be treated as a 1 pend ne variance and not charged to the plscts? complefe this question by entering your answers in the thbs below. Wgm much of the Thanspert Services Departmentf varjable costs shouid bef charged to each piant? Exercise 11.4 (Algo) Service Department Charges [LO11-4] Hannibai 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 $331,000 per year, consisting of $0.19 per ton variable cost and $281,000 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 65% of the Transport Services Department's capacity and the Southern Plant requires 35% During the year, the Transport Services Department actually hauled 113,000 tons of ore to the Northern Plant and 69,400 tons to the Southern Plant. The Transport Services Department incurred $366,000 in cost during the year, of which $53,800 was variable cost and $312,200 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 Transport Services Department's fixed costs shouid be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $366,000 should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. How much of the Transport Services Department's fixed costs should be charged to each plant? 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 company's mine to its two steel mills - the Northern Plant and the Southem Plant. Budgeted costs for the Transport Services Department total $331,000 per year, consisting of $0,19 per ton variable cost and $281,000 fixed cost. The level of flxed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 65% of the Transport Services Department's capocity and the Southern Plant requires 35% During the year, the Transport Services Department actually hauled 113,000 tons of ore to the Northern Plant and 69,400 tons to the Southern Plant. The Transport Services Department incurred $366,000 in cost during the year, of which $53,800 was variable cost and $312,200 was fixed cost Required: 1. How much of the Transport Services Department's variable costs should be chatged to each plant? 2. How much of the Transport Services Department's fixed costs should be charged to eoch plant? 3. How much, if any, of the Transport Services Department's actual total cost or $366,000 shouid be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below, How much, if any, of the Transport Services Department's actual total cost of $366,000 should be treated as a spending variance and not charged to the plants