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and 118 Saved Help Save & Exi Cheo Problem 11B-5 Service Department Charges [L011-6] Tasman Products, Ltd., of Australia has a Maintenance Department that services

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and 118 Saved Help Save & Exi Cheo Problem 11B-5 Service Department Charges [L011-6] 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: Variable costs for lubricants Fixed costs for salaries and other 342,700.$439,510 $206,000 $221,600 "Budgeted at $23 per machine-hour. Data for the Forming and Assembly Departments follow Percentage of Peak-Period Machine-Hours Forning Departnent Assembly Department Total Capacity Required Budget Actual 11,700 ,200 15,900 71% 29 1008 9,700 14,900 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: Management would like data to assist in comparing actual performance to planned performance in the Maintenance Department and in the other departments. 1. How much Maintenanice Department cost should be charged to the Forming Department and to the Assembly Department?

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