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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 two steel mills-the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $172,000 per year, consisting of $0.2 per ton variable cost and $122,000 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 57% of the Transport Services Department's capacity and the Southern Plant requires 43%. During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 125,000 tons; Southern Plant, 63,100 tons. The Transport Services Department incurred $361,000 in cost during the year, of which $52,000 was variable cost and $309,000 was fixed cost. Required: 1. How much of the $52,000 in variable cost should be charged to each plant? 2. How much of the $309,000 in fixed cost should be charged to each plant? 3. How much of the $361,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 How much of the $52,000 in variable cost should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern Plant How much of the $309,000 in fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern PlantHow much of the $361,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? -|