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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 $328,500 per year, consisting of $0.2 per ton variable cost and $278,500 fixed cost. The level of fixed cost is determined by peak-period requirements During the peak period, the Northern Plant requires 68% of the Transport Services Department's capacity and the Southern Plant requires 32% During the year, the Transport Services Department actually hauled 119,000 tons of ore to the Northern Plant and 67700 tons to the Southern Plant. The Transport Services Department incurred $370,000 in cost during the year, of which $52,300 was variable cost and $317700 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 $317.700 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $370,000 be treated as a spending variance and not charged to the plants? ow. Required 1 Required 2 Required 3 S How much of the Transport Services Department's variable costs should be cha Variable cost charged to Northern Plant Variable cost charged to Southern Plant Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should any of the Transport Services Department's actual total cost of $370,000 be treated as a spending variance and not charged to the plants? Spending variance

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