Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE USE MY NUMBERS NOT SOME OTHER NUMBERS THAT ARE INVOLVED IN SOME OTHER QUESTION THAT IS SIMILAR TO THIS. Hannibal Steel Company has a

PLEASE USE MY NUMBERS NOT SOME OTHER NUMBERS THAT ARE INVOLVED IN SOME OTHER QUESTION THAT IS SIMILAR TO THIS.

image text in transcribed

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 $191,200 per year, consisting of $0.2 per ton variable cost and $141,200 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 51% of the Transport Services Department's capacity and the Southern Plant requires 49% During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 121,000 tons; Southern Plant, 68,100 tons. The Transport Services Department incurred $368,000 in cost during the year, of which $53,400 was variable cost and $314,600 was fixed cost. Required 1. Determine how much of the $53,400 in variable cost should be charged to each plant. Variable cost charged to Northern Plant Variable cost charged to Southern Plant 2. Determine how much of the $314,600 in fixed cost should be charged to each plant. Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant 3. Should any of the $368,000 in the Transport Services Department cost not be charged to the plants? Unallocated cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Internal Auditing

Authors: Manuel E. Peña-Rodríguez

1st Edition

1736742922, 978-1736742921

More Books

Students also viewed these Accounting questions

Question

Explain the importance of Human Resource Management

Answered: 1 week ago

Question

Discuss the scope of Human Resource Management

Answered: 1 week ago

Question

Discuss the different types of leadership

Answered: 1 week ago

Question

Write a note on Organisation manuals

Answered: 1 week ago

Question

7. What decisions would you make as the city manager?

Answered: 1 week ago

Question

8. How would you explain your decisions to the city council?

Answered: 1 week ago