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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 $162,700 per year, consisting of $0.21 per ton variable cost and $112700 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 129.000 tons of ore to the Northem Plant and 69,300 tons to the Southern Plant, The Transport Services Department incurred $372,000 in cost during the year, of which $53,400 was variable cost and $318,600 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 $318 600 in fixed cost should be charged to each plant? 3. How much any of the Transport Services Department's actual total cost of $372,000 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: Required 2 Required 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 2 >

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