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Exercise 11B-1 (Alger) Service Department Charges [LO11-6] Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company's mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $289,400 per year, consisting of $0.18 per ton variable cost and $239,400 fixed cost. The level ofxed 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 req uires 49%. During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant, 122,000 tons; Southern Plant, 58,900 tons. The Transport Services Department incurred $357,000 in cost during the year, of which $52,700 was variable cost and $304,300 was fixed cost. Required: 1. How much of the $52,700 in variable cost should be charged to each plant? 2. How much ofthe $304,300 in fixed cost should be charged to each plant'iI 3. How much of the $357,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? Required 1 Required 2 Required 3 How much of the $52,700 in variable cost should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern PlantRequired 1 Required 2 Required 3 How much of the $304,300 in fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern PlantRequired 1 Required 2 Required 3 How much of the $357,000 In the Transport Services Department cost should be treated as a spending variance and not charged to the plants? _:|