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Hannibal Steel Company s Transport Services Department provides trucks to haul ore from the company s mine to its two steel mills the Northern Plant

Hannibal Steel Companys Transport Services Department provides trucks to haul ore from the companys mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $278,900 per year, consisting of $0.22 per ton variable cost and $228,900 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 56% of the Transport Services Departments capacity and the Southern Plant requires 44%.
During the year, the Transport Services Department actually hauled 119,000 tons of ore to the Northern Plant and 64,000 tons to the Southern Plant. The Transport Services Department incurred $367,000 in cost during the year, of which $52,600 was variable and $314,400 was fixed.
How much of the Transport Services Departments variable costs should be charged to each plant?
Variable cost charged to Northern Plant
Variable cost charged to Southern Plant

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