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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 steel mills - the Northern

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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 steel mills - the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $279,100 pe consisting of $0.23 per ton variable cost and $229,100 fixed cost. The level of fixed cost is determined by peak-period requiren During the peak period, the Northern Plant requires 61% of the Transport Services Department's capacity and the Southern Plan requires 39%. During the year, the Transport Services Department actually hauled 124,000 tons of ore to the Northern Plant and 67,600 tons t Southern Plant. The Transport Services Department incurred $360,000 in cost during the year, of which $53,700 was variable $306,300 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 Transport Services Department's fixed costs should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $360,000 should be treated as a spending varia and not charged to the plants? Complete this question by entering your answers in the tabs below. How much of the Transport Services Department's variable costs should be charged to each plant

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