Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $80,000 per month plus $0.70 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 72% of the peak- period requirements, and the Truck Division is responsible for the other 28% For June, the Auto Division estimated it would need 87,000 meals served, and the Truck Division estimated it would need 57,000 meals served. However, due to unexpected layoffs of employees during the month, only 57,000 meals were served to the Auto Division. Another 57,000 meals were served to the Truck Division as planned. Cost records in the cafeteria show that actual fixed costs for June totaled $89,000 and actual meal costs totaled $97,800. Required: 1. How much cafeteria cost should be charged to each division for June? 2. Assume the company follows the practice of allocating all cafeteria costs incurred each month to the divisions in proportion to the number of meals served to each division during the month. On this basis, how much cost would be allocated to each division for June? (Round your intermediate calculations to 2 decimal places.) Auto Truck Division Division Total cost charged 1 2. Total cost allocated 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 $287,500 per year, consisting of $0.24 per ton variable cost and $237,500 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 65% of the Transport Services Department's capacity and the Southern Plant requires 35%. During the year, the Transport Services Department actually hauled the following amounts of ore for the two plants: Northern Plant 114,000 tons; Southern Plant, 66,100 tons. The Transport Services Department incurred $374,000 in cost during the year, of which $53,200 was variable cost and $320,800 was fixed cost. Required: 1. How much of the $53,200 in variable cost should be charged to each plant? 2. How much of the $320,800 in fixed cost should be charged to each plant? 3. How much of the $374,000 in the Transport Services Department cost should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1 How much of the $53,200 in variable cost should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern Plant Required 1 Required 2