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Hannibal Steet Company's Transport Services Department provides trucks to haul ore from the cornpany/s mine to its two steel millsthe Northern Plant and the Southern
Hannibal Steet Company's Transport Services Department provides trucks to haul ore from the cornpany/s mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $250700 per yoar, consisting 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 117,000 tons of ore to the Northem Plant and 59,700 tons to the Southern Pant. The Transport Services Department incurred $369,000 in cest during the year, of which $52,000 was variable and $317,000 wist fixed Bequired: 1. How much of the Transport Services Deportment's variable costs should be charged to each plant? 2. How moch of the Transport Services Department's flxed costs should be charged to each plant? 3. How much, if ary, of the Transport Services Department's actual total cost of $369,000 should be treoted as a spending variance and not charged to the plants
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