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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 millsthe Northem Plant and the Southern

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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 millsthe Northem Plant and the Southern Plant. Budgeted costs for the Transport Services Department total \$277,500 per year, consisting of $0.22 per ton variable cost and $227,500 fixed cost. The level of fixed cost is determined by peak-period requirements, During the peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires 37% During the year, the Transport Services Department actually hauled 114,000 tons of ore to the Northern Plant and 59,100 tons to the Southern Plant. The Transport Services Departmeot incurred $363,000 in cost during the year, of which $52,000 was variable and $311,000 was foxed. Required: 1. How much of the Transport Services Department's variable costs should be charged to eoch plant? 2. How much of the Transport Services Department's fixed costs should be charged to ach plant? 3. How much, if any, of the Transport Services Department's actual total cost of $363,000 should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. How moch of the Transport Services Department's variable costs should be charged to each plant? 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 eqach plant? 3. How much, if any, of the Transport Services Department's actual total cost of $363,000 should be treat 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 nxed costs should be charged to each plant? Hannibal Steel Company's Transport Services Department provides trucks to haul ore from the company's mine to its two stee the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $277,500 per year, cor of $0.22 per ton variable cost and $227,500 fixed cost. The level of fixed cost is determined by peak-period requirements. Du peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires During the year, the Transport Services Department actually hauled 114,000 tons of ore to the Northern Plant and 59,100 tons Southern Plant. The Transport Services Department incurred $363,000 in cost during the year, of which $52,000 was variable $311,000 was fixed. 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 eqach plant? 3. How much, if any, of the Transport Services Department's actual total cost of $363,000 should be treated as a spending var and not charged to the plants? Complete this question by entering your answers in the tabs below. How much, If any, of the Transport Services Department's actual total cost of $363,000 shouid be treated as a spending variance and not charged to the plants

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