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 $$224,400$ per year,

consisting of $$0\mathrm{.}16$ per ton varlable cost and $$174,400$ fixed cost. The level of fixed cost is determined by peak$-$perlod requirements.

During the peak perlod, 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 $120,000$ tons of ore to the Northern Plant and $54,500$ tons to the

Southern Plant. The Transport Services Department Incurred $$361,000$ In cost during the year, of which $$52,200$ was varlable cost and

$$308,800$ was fixed cost.

Requlred:

How much of the Transport Services Department's varlable costs should be charged to each plant?

How much of the Transport Services Department's fixed costs should be charged to each plant?

How much, If any, of the Transport Services Department's actual total cost of $$361,000$ should be treated as a spending varlance

and not charged to the plants?