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1 00 pots Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The

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1 00 pots Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Budget Actuat Variable costs for lubricants $330,000+ $423,000 Fixed costs for salaries and other $196,500 Budgeted at $22 per machine-hour Data for the Forming and Assembly Departments follow. B merces Forning Department sembly Department Total Percentage of Peak Period Machine-hour Capacity Required Budget Metal 10,100 12,100 390 4.900 1.900 1001 15,000 16,000 The level of fixed costs in the Maintenance Department is determined by peak period requirements Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments? Required 1 Required 2 Terences How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Departmen Forming Assembly Department Department Total cost charged Required 1 Required 2 >

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