asman Products, Limited, 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 Actual Variable costs for lubricants $ 327,600*Footnote asterisk $ 419,880 Fixed costs for salaries and other $ 184,000 $ 197,400 *Footnote asteriskBudgeted at $21 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak-Period Capacity Required Machine-Hours Budget Actual Forming Department 63% 10,500 12,500 Assembly Department 37% 5,100 4,100 Total 100% 15,600 16,600 The level of fixed costs in the Maintenance Department is determined by peak-period requirements