Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...

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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 $307,400 per year. consisting of $0.19 per ton variable cost and $257,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires 37%. During the year, the Transport Services Department actually hauled 125,000 tons of ore to the Northern Plant and 51,100 tons to the Southern Plant. The Transport Services Department incurred $377,000 in cost during the year, of which $52,400 was variable cost and $324,600 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 $324,600 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $377.000 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 Required 3 How much of the Transport Services Department's variable costs should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern Plant Required 2 > 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 $307,400 per year, consisting of $0.19 per ton variable cost and $257,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires 37% During the year, the Transport Services Department actually hauled 125,000 tons of ore to the Northern Plant and 51,100 tons to the Southern Plant. The Transport Services Department incurred $377,000 in cost during the year, of which $52,400 was variable cost and $324,600 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 $324,600 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $377,000 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 Required 3 How much of the fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant < Required 1 Required 3 > 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 $307,400 per year, consisting of $0.19 per ton variable cost and $257,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires 37% During the year, the Transport Services Department actually hauled 125,000 tons of ore to the Northern Plant and 51,100 tons to the Southern Plant The Transport Services Department incurred $377,000 in cost during the year, of which $52,400 was variable cost and $324,600 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 $324,600 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $377,000 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 Required 3 Should any of the Transport Services Department's actual total cost of $377,000 be treated as a spending variance and not charged to the plants? Spending variance < Required 2 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 $307,400 per year. consisting of $0.19 per ton variable cost and $257,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires 37%. During the year, the Transport Services Department actually hauled 125,000 tons of ore to the Northern Plant and 51,100 tons to the Southern Plant. The Transport Services Department incurred $377,000 in cost during the year, of which $52,400 was variable cost and $324,600 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 $324,600 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $377.000 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 Required 3 How much of the Transport Services Department's variable costs should be charged to each plant? Variable cost charged to Northern Plant Variable cost charged to Southern Plant Required 2 > 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 $307,400 per year, consisting of $0.19 per ton variable cost and $257,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires 37% During the year, the Transport Services Department actually hauled 125,000 tons of ore to the Northern Plant and 51,100 tons to the Southern Plant. The Transport Services Department incurred $377,000 in cost during the year, of which $52,400 was variable cost and $324,600 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 $324,600 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $377,000 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 Required 3 How much of the fixed cost should be charged to each plant? Fixed cost charged to Northern Plant Fixed cost charged to Southern Plant < Required 1 Required 3 > 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 $307,400 per year, consisting of $0.19 per ton variable cost and $257,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 63% of the Transport Services Department's capacity and the Southern Plant requires 37% During the year, the Transport Services Department actually hauled 125,000 tons of ore to the Northern Plant and 51,100 tons to the Southern Plant The Transport Services Department incurred $377,000 in cost during the year, of which $52,400 was variable cost and $324,600 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 $324,600 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $377,000 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 Required 3 Should any of the Transport Services Department's actual total cost of $377,000 be treated as a spending variance and not charged to the plants? Spending variance < Required 2

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1 Variable Cost Charged to Northern Plant 23750 Variable Cost Ch... View the full answer