Exercise $11-4($Algo$)$ Service Department Charges $[$LO$11-4]$

Hannibal Steel Company's Transport Services Department 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 $$284,300$ per year, consisting of $$0\mathrm{.}22$ per ton variable cost and $$234,300$ fixed cost. The,level of fixed cost is determined by peak$-$period requirements. During the peak period, the Northern Plant requires $50\%$ of the Transport Services Department's capacity and the Southern Plant requires $50\%.$

During the year, the Transport Services Department actually hauled $114,000$ tons of ore to the Northern Plant and $64,900$ tons to the Southern Plant. The Transport Services Department incurred $$361,000$ in cost during the year, of which $$53,200$ was variable and $$307,800$ was fixed.

Required:

How much of the Transport Services Department's variable costs should be charged to each plant?

How much of the Transport Services Department's fixed costs should be charged to each plant?

How much, if any, of the Transport Services Department's actual total cost of $$361,000$ 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 $1$

Required $2$

How much of the Transport Services Department's variable costs should be charged to each plant?

$\backslash$table$[[$Variable cost charged to Northern Plant$],[$Variable cost charged to Southern Plant$]]$

Exercise $11-4($Algo$)$ Service Department Charges $[$LO$11-4]$

Hannibal Steel Company's Transport Services Department 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 $$284,300$ per year, consisting of $$0\mathrm{.}22$ per ton variable cost and $$234,300$ fixed cost. The,level of fixed cost is determined by peak$-$period requirements. During the peak period, the Northern Plant requires $50\%$ of the Transport Services Department's capacity and the Southern Plant requires $50\%.$

During the year, the Transport Services Department actually hauled $114,000$ tons of ore to the Northern Plant and $64,900$ tons to the Southern Plant. The Transport Services Department incurred $$361,000$ in cost during the year, of which $$53,200$ was variable and $$307,800$ was fixed.

Required:

How much of the Transport Services Department's variable costs should be charged to each plant?

How much of the Transport Services Department's fixed costs should be charged to each plant?

How much, if any, of the Transport Services Department's actual total cost of $$361,000$ 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 $1$

Required $2$

How much of the Transport Services Department's variable costs should be charged to each plant?

$\backslash$table$[[$Variable cost charged to Northern Plant$],[$Variable cost charged to Southern Plant$]]$

Exercise $11-4($Algo$)$ Service Department Charges $[$LO$11-4]$

Hannibal Steel Company's Transport Services Department 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 $$284,300$ per year, consisting of $$0\mathrm{.}22$ per ton variable cost and $$234,300$ fixed cost. The,level of fixed cost is determined by peak$-$period requirements. During the peak period, the Northern Plant requires $50\%$ of the Transport Services Department's capacity and the Southern Plant requires $50\%.$

During the year, the Transport Services Department actually hauled $114,000$ tons of ore to the Northern Plant and $64,900$ tons to the Southern Plant. The Transport Services Department incurred $$361,000$ in cost during the year, of which $$53,200$ was variable and $$307,800$ was fixed.

Required:

How much of the Transport Services Department's variable costs should be charged to each plant?

How much of the Transport Services Department's fixed costs should be charged to each plant?

How much, if any, of the Transport Services Department's actual total cost of $$361,000$ 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 $1$

Required $2$

How much of the Transport Services Department