Managerial accounting

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 $186, 800 per year, consisting of $0.19 per ton variable cost and $136, 800 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 61% of the Transport Services Department's capacity and the Southern Plant requires 39%. During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant. 116.000 tons; Southern Plant. 69, 900 tons. The Transport Services Department incurred $376,000 in cost during the year, of which $52, 400 was variable cost and $323, 600 was fixed cost. Required: Determine how much of the $52, 400 in variable cost should be charged to each plant. Determine how much of the $323, 600 in fixed cost should be charged to each plant. Should any of the $376,000 in the Transport Services Department cost not be charged to the plants