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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 $290,800 per year, consisting of $0 21 per ton variable cost and $240,800 fixed cost. The level of foed cost is determined by peak period requirements. During the peak period, the Northern Plant requires 58% of the Transport Services Department's capacity and the Southern Plant requires 42% During the year, the Transport Services Department actually hauled 129.000 tons of ore to the Northern Plant and 65.200 tons to the Southern Plant The Transport Services Department incurred $369,000 in cost during the year, of which $52.200 was variable cost and $316,800 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 $316,800 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $369,000 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 fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant

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