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Hannibal Steel Companys Transport Services Department provides trucks to haul ore from the companys mine...

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Accounting

Hannibal Steel Companys Transport Services Department provides trucks to haul ore from the companys mine to its two steel millsthe Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $230,800 per year, consisting of $0.19 per ton variable cost and $180,800 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 55% of the Transport Services Departments capacity and the Southern Plant requires 45%.
During the year, the Transport Services Department actually hauled 122,000 tons of ore to the Northern Plant and 62,600 tons to the Southern Plant. The Transport Services Department incurred $355,000 in cost during the year, of which $52,500 was variable and $302,500 was fixed.
Required:
How much of the Transport Services Departments variable costs should be charged to each plant?
How much of the Transport Services Departments fixed costs should be charged to each plant?
How much, if any, of the Transport Services Departments actual total cost of $355,000 should be treated as a spending variance and not charged to the plants?

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