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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

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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 $308,400 per year, consisting of $0.2 per ton variable cost and $258,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 56% of the Transport Services Department's capacity and the Southern Plant requires 44%. During the year, the Transport Services Department actually hauled 128,000 tons of ore to the Northern Plant and 61,300 tons to the Southern Plant. The Transport Services Department Incurred $361,000 in cost during the year, of which $52,500 was variable cost and $308,500 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 $308,500 in fixed cost should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $361,000 should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the Transport Services Department's variable costs should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southem Plant Required 1 Required 2 >

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