Riverbed's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,120 sessions. The company has invested $2,304,960 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming ye are as follows.

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 $188,400 per year, consisting of $0.19 per ton variable cost and $138,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 56% of the Transport Services Department’s capacity and the Southern Plant requires 44%. During the year, the Transport Services Department actually hauled 129,000 tons of ore to the Northern Plant and 59,800 tons to the Southern Plant. The Transport Services Department incurred $371,000 in cost during the year, of which $52,500 was variable cost and $318,500 was fixed cost. 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…

Hannibal Steel Company's Transport Services Department 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 $311,100 per year, consisting of $0.23 per ton variable cost and $261,100 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 61% of the Transport Services Department's capacity and the Southern Plant requires 39%. During the year, the Transport Services Department actually hauled 118,000 tons of ore to the Northern Plant and 55,600 tons to the Southern Plant. The Transport Services Department incurred $355,000 in cost during the year, of which $53,100 was variable and $301,900 was fixed. Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the Transport Services Department's fixed costs should be charged to…

Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the following information. Units produced Material moves per product line Lenses 30 Mirrors 30 21 11 220 220 Direct-labor hours per unit The total budgeted material-handling cost is $94,200. Required: 1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be what amount? 2. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one mirror would be what amount? 3. Under activity-based costing (ABC), the material-handling costs allocated to one lens would be what amount? The cost driver for the material-handling…