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1 Joe Biden Ltd. has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing

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1 Joe Biden Ltd. 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: 17.5 points 00:54 Budget Actoni Variable costs for lubricants 0327,800+ $420, 240 Fixed costs for Slation and other 218,000 $234.000 "Budgeted at $22 per machine-hour Data for the Forming and Assembly Departments follow: Percentage of Tak Period Ksenior Capacity equired Budget Actual Toring Departinent 660 10,100 12,100 Aseably Department 341 4.800 3.000 Total 1001 14,900 15,900 Book The level of fixed costs in the Maintenance Department is determined by peak perlod 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? Complete this question by entering your answers in the tabs below. 1 Forning Department Au sembly Department Total Capacity Required 664 340 1000 Budget 10,100 4.800 14.900 Actual 12,100 3.800 15,900 175 points 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? 8 00:54 Book Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Forming Assembly Department Department Total cost charged 1 Forming Department Ansembly Department Total Capacity Required Badget 668 10,100 348 4.800 1000 14,900 etusi 12,100 3,00 15.900 ts The level of fixed costs in the Maintenance Department is determined by peak-perlod 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? 00:54:27 BOOK Complete this question by entering your answers in the tabs below. Required 1 Required 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? Spending variano Required 1

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