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Hannibal Steel Company has a Iransport Services Department that provides trucks to haul ore from the company's mine to its two steel mills - the

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Hannibal Steel Company has a Iransport Services Department that provides trucks to haul ore from the company's mine to its two steel mills - the Northem Plant and the Southern Plant. Budgeted costs for the Transport Services Department total \$226,800 per year. consisting of $0.22 per ton variable cost and $176,800 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 126,000 tons of ore to the Northern Plant and 52,100 tons to the Southern Plant. The Transport Services Department incurred $355.000 in cost during the year, of which $52.900 was varlable cost and $302,100 was fixed cost Required: 1. How much of the Transport Services Department's varlable costs should be charged to each plant? 2. How much of the Transport Services Department's fixed costs should be charged to each plant? 3. How much, if any. of the Transport Services Department's actual total cost of $355,000 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 variable costs should be charged to each plant? Hannibal Steel Company has a Transport Services Depattment that provides trucks to haut ote 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 $226,800 per yeat. consisting of $0,22 per ton variable cost and $176,800 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 capecity and the Southern Plant. requires 35% During the year, the Transport Services Department actually hauled 126,000 tons of ore to the Northern Plant and 52.100 tons to the Southem Plant. The Transport Services Department incurred $355,000 in cost duting the yedt of which $52,900 was variable cost and $302.100 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 cosis should bo charged to each plant? 3. How much. If ary, of the Transport Services Department's actual total cost of $355,000 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 bo charged to each plant? 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 $276.800 per year. consisting of $0.22 per ton variable cost and $176,800 fixed cost. The level of tixed cost is determined by peak-period requirements. During the peak period, the Northem 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 126.000 tons of ore to the Northern Plant and 52100 tons to the Southern Plant. The Transport Services Department incurred $355.000 in cost during the year. of which $52.900 was variable cost and $302,100 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 should be charged to each plant? 3. How much, If any, of the Transport Services Department's actual total cost of $355.000 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, if any, of the Transport Services Department's actual total cost of $355,000 should be treated as a spending variance and not charged to the plants

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