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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

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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 $332,900 per year, consisting of $0.15 per ton variable cost and $282,900 fixed cost. The level of fixed cost is determined by peak-period requirements During the peak perlod, the Northern Plant requires 52% of the Transport Services Department's capacity and the Southern Plant requires 48% During the year, the Transport Services Department actually hauled 124,000 tons of ore to the Northern Plant and 65,600 tons to the Southern Plant. The Transport Services Department incurred $352,000 in cost during the year, of which $53,400 was variable cost and $298,600 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 $298,600 in fixed cost should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $352,000 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 Southern Plant Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant Required 1 Required 2 Required 3 How much, if any, of the Transport Services Department's actual total cost of $352,000 should be treated as a spending variance and not charged to the plants? Spending variance

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