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 $190,400 per year, consisting of $0.15 per ton variable cost and $140,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 55% of the Transport Services Department's capacity and the Southern Plant requires 45%. During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 118,000 tons, Southern Plant, 67,300 tons. The Transport Services Department incurred $360,000 in cost during the year, of which $53,700 was variable cost and $306,300 was fixed cost. Required 1. Determine how much of the $53,700 in variable cost should be charged to each plant. Variable cost charged to Northern Plant Variable cost charged to Southern Plant 2. Determine how much of the $306,300 in fixed cost should be charged to each plant. Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant 3. Should any of the $360,000 in the Transport Services Department cost not be charged to the plants? Unallocated cost