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only need 2 and 3 Hannibal Steol Company has a Transport Services Department that provides trucks to haul ore from the companys mine to its
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Hannibal Steol Company has a Transport Services Department that provides trucks to haul ore from the companys mine to its two steel mills-the Northern Plant and the Southern. Plant. Budgeted costs for the Transport Services Department total $165,400 per year, consisting of $0.23 per ton variable cost and $115,400 flixed cost. The level of fored cost is determined by peak-period requirements. During the peak perlod, the Northern Plant requires 59% of the Transport Services Department's capacity and the Southein Plant requires 419 ? During the year, the Transport Services Department actually hauled 114,000 tons of ore to the Northern Plant and 57100 tons to the Southern Plant. The Transport Services Department incurred $369,000 in cost during the yeac, of which $52.800 was variable cost and $315,200 was fived cost. Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the $315,200 in fowed cost should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $368,000 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 much of the foxed cost should be charged to each plant? 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 5368,000 sheuld bet treated as a spending variance and not charged to the plants Step by Step Solution
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