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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 $231.200 per year, consisting of $0.24 per ton variable cost and $181.200 fixed cost. The level of fixed cost is determined by peak period requirements During the peak period, the Northern Plant requires 59% of the Transport Services Department's capacity and the Southern Plant requires 41% During the year, the Transport Services Department actually hauled 130,000 tons of ore to the Northern Plant and 62.600 tons to the Southern Plant The Transport Services Department incurred $361,000 in cost during the year, of which $52.400 was variable cost and $308,600 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 $308,600 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $361000 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 cont charged to Southern Plant Required 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 3 > 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 $361,000 be treated as a spending variance and not charged to the plants? Spending variance

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