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No need to show work just answers. thank you! 4 2 points stepood Hannibal Steel Company has a Transport Services Department that provides trucks to
No need to show work just answers. thank you!
4 2 points stepood 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 $180,300 per year, consisting of $0.16 per ton variable cost and $130,300 fixed cost. The level of fixed cost is determined by peak-period requirements, During the peak period, the Northern Plant requires 68% of the Transport Services Department's capacity and the Southern Plant requires 32% During the year, the Transport Services Department actually hauled 127,000 tons of ore to the Northern Piant and 53,800 tons to the Southern Piant. The Transport Services Department incurred $356,000 in cost during the year, of which $53,600 was variable cost and $302.400 was fixed cost. Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the $302,400 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $356,000 be treated as a spending variance and not charged to the plants? Print References Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 How much of the Transport Services Department's variable costs should be charged to each plant? Vanable cost charged to Northern Plant Variable cost charged to Southern Plant Required 2 > Step by Step Solution
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