Question: view Problems Seved Help Save & Exit 5 Check my w Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore

 view Problems Seved Help Save & Exit 5 Check my w

view Problems Seved Help Save & Exit 5 Check my w 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 $229,100 per year, consisting of $0.24 per ton variable cost and $179,100 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 51% of the Transport Services Department's capacity and the Southern Plant requires 49% During the year, the Transport Services Department actually hauled 116,000 tons of ore to the Northern Plant and 50,200 tons to the Southern Plant. The Transport Services Department incurred $354,000 in cost during the year, of which $53,000 was variable cost and $301000 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 $301,000 in fixed cost should be charged to each plant? 3. Should any of the Transport Services Department's actual total cost of $354,000 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 How much of the Transport Services Department's variable costs should be charged to each plant? Vanable cost charged to Northern Plant ME

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