Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $336,600 per year, consisting of $0.21 per ton variable cost and $286,600 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 70% of the Transport Services Department's capacity and the Southern Plant requires 30% During the year, the Transport Services Department actually hauled 128,000 tons of ore to the Northern Plant and 69,600 tons to the Southern Piant. The Transport Services Department incurred $366,000 in cost during the year, of which $53,200 was variable cost and $312,800 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 $312,800 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $366,000 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 Complete this question by entering your answers in the tabs below. Required 1 Requed 2 Required 3 How much of the fixed cost should be charged to each plant? Fixed cost charged to Northam Plant Fixed cost charged to Southern Plant Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should any of the Transport Services Department's actual total cost of $366,000 be treated as a spending variance and not charged to the plants? Spending variante

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Financial System Reform In Eastern Europe And Asia

Authors: Robert W. McGee, Galina G. Preobragenskaya

2nd Edition

0387257098, 9780387257099

More Books

Students also viewed these Accounting questions

Question

Differentiate between an atom, a molecule, and a compound.

Answered: 1 week ago

Question

=+a) Is this an experimental or observational study? Explain.

Answered: 1 week ago

Question

What was the positive value of Max Weber's model of "bureaucracy?"

Answered: 1 week ago