based on the actual number of employees in each department. It charges fixed costs to operating departments based on the long-run average number of employees. The Medical Services Department's variable costs are budgeted at $59 per employee and its fixed costs are budgeted at $615,700 per year. Actual Medical Services Department costs for the most recent year were $105,800 for variable costs and $621,000 for fixed costs. Data concerning employees in the three operating departments follow: Cutting 601 Milling 291 501 810 Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees Required: 1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly. Assembly 908 391 540 808 1,350 2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged to operating departments?

based on the actual number of employees in each department. It charges fixed costs to operating departments based on the long-run average number of employees. The Medical Services Department's variable costs are budgeted at $59 per employee and its fixed costs are budgeted at $615,700 per year. Actual Medical Services Department costs for the most recent year were $105,800 for variable costs and $621,000 for fixed costs. Data concerning employees in the three operating departments follow: Required: 1. Caiculate the Medical Services Department charges to each of the operating departments-Cutting. Milling, and Assembly. 2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged to operating departments