Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the companys mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $165,200 per year, consisting of $0.24 per ton variable cost and $115,200 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 51% of the Transport Services Departments capacity and the Southern Plant requires 49%.

During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 130,000 tons; Southern Plant, 66,300 tons. The Transport Services Department incurred $370,000 in cost during the year, of which $52,400 was variable cost and $317,600 was fixed cost.

Required:

1. How much of the $52,400 in variable cost should be charged to each plant?

2. How much of the $317,600 in fixed cost should be charged to each plant?

3. How much of the $370,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants?

Required: 1. How much of the $52,400 in variable cost should be charged to each plant? 2. How much of the $317,600 in fixed cost should be charged to each plant? 3. How much of the $370,000 in the Transport Services Department cost should be treated as a spending variance and not charged the plants? Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 How much of the $52,400 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) Prev of 3 Nex Requirec: 1. How much of the $52,400 in variable cost should be charged to each plant? 2. How much of the $317,600 in fixed cost should be charged to each plant? 3. How much of the $370,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 How much of the $317,600 in fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant K Required 1 Required 3> Prev 1of 3 Next > Saved Help Save& Exit Subr Required: 1. How much of the $52,400 in variable cost should be charged to each plant? 2. How much of the $317,600 in fixed cost should be charged to each plant? 3. How much of the $370,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. Required 1Required 2 Required3 How much of the $370,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? Spending variance Required 2 Required3