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Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the companys mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $165,000 per year, consisting of $0.21 per ton variable cost and $115,000 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 Departments capacity and the Southern Plant requires 39%.

During the year, the Transport Services Department actually hauled 112,000 tons of ore to the Northern Plant and 65,400 tons to the Southern Plant. The Transport Services Department incurred $378,000 in cost during the year, of which $52,500 was variable cost and $325,500 was fixed cost.

Required:

1. How much of the Transport Services Departments variable costs should be charged to each plant?

2. How much of the $325,500 in fixed cost should be charged to each plant?

3. How much, if any, of the Transport Services Departments actual total cost of $378,000 should be treated as a spending variance and not charged to the plants?

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 Northem Plant and the Southern Plant. Budgeted costs for the Transport Services Department total \$165,000 per year, consisting of $0.21 per ton variable cost and $115,000 fixed cost The level of fixed cost is determined by peak-perlod requirements. During the peak period, the Northern Plant requires 61% of the Transport Services Department's capocity and the Southem Plant requires 39%. During the year, the Transport Services Department actually hauled 112,000 tons of ore to the Northern Plant and 65,400 tons to the Southem Piant. The Transport Services Department incurred $378,000 in cost during the year, of which $52.500 was varlable cost and $325,500 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 $325,500 in fixed cost should be charged to each plant? 3. How much, If any, of the Transport Services Department's actuol total cost of $378,000 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 Transport Services Department's variable costs should be charged to each plant? 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 Northem Plant and the Southem Plant. Budgeted costs for the Transport Services Department total $165,000 per y consisting of $0.21 per ton variable cost and $115,000 fixed cost. The level of fixed cost is determined by peak-period requirement 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 112.000 tons of ore to the Northern Plant and 65,400 tons to the Southem Plant. The Transport Services Department incurred $378,000 in cost during the year, of which $52,500 was variable cost, $325,500 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 $325,500 in fixed cost should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $378,000 should be treated as a spending varlance and not charged to the plants? Complete this question by entering your answers in the tabs below. How much of the fixed cost should be charged to each plant? Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company's mine to its two steel milis-the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total \$165,000 per year consisting of $0.21 per ton variable cost and $115,000 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 112,000 tons of ore to the Northern Plant and 65,400 tons to the Southern Plant. The Transport Services Department incurred $378,000 in cost during the year, of which $52,500 was variable cost and $325,500 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 $325,500 in fixed cost should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $378,000 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, If any, of the Transport Services Department's actual total cost of $378,000 should be treated as a spending variance and not charged to the plants