Check my Hannibal Steel Company has a Transport Services Department that provides trucks to haul...

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Check my Hannibal Steel Company has a Transport Services Department that provides trucks to haul are 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 $245,200 per year, consisting of $0.2 per ton variable cost and $195,200 fixed cost. The level of fixed cost is determined by peak period requirements. During the peak period, the Northern Plant requires 53% of the Transport Services Department's capacity and the Southern Plant requires 47% During the year, the Transport Services Department actually hauled 118,000 tons of ore to the Northern Plant and 66,700 tons to the Southern Plant. The Transport Services Department incurred $363,000 in cost during the year, of which $53,300 was variable cost and $309.700 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 $309,700 in fixed cost should be charged to each plant? 3. How much, if any, of the Transport Services Department's actual total cost of $363,000 should be treated as a spending variance and not charged to the plants? Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3

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