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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 5164 700 per year, consisting of $0,24 per ton variable cost and $114700 fixed cost. The level of fixed cost is determined by peak period requirements During the peak period, the Northern Plant requires 66% of the Transport Services Department's capacity and the Southern Plant requires 34% During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 122.000 tons, Southern Plant, 58,600 tons. The Transport Services Department incurred $364.000 in cost during the year of which $52,500 was variable cost and $311,500 was fixed cost. Required: 1. How much of the $52,500 in variable cost should be charged to each plant? 2 How much of the $311 500 in fixed cost should be charged to each plante 3. How much of the $364 000 in the Transport Services Department cost 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 $52,500 in variable cost should be charged to each plant? Variable cost charged to Northern Plan Vanable con charged to Southern Plant

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