Check my w roblem 11B-5 Service Department Charges [L011-6) asman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department nd Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and ther 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 Budget Actual $331,200 $424,560 $197,000 $211,700 Budgeted at $23 per machine-hour. Data for the Forming and Assembly Departments follow Percentage of Peak-Period Machine-Hours Capacity Required Budget Actual Forming Department Assembly Department Total 698 31% 1008 9,700 4,700 14,400 11,700 3,700 15,400 The level of fixed costs in the Maintenance Department is determined by peak-period requirements KPrev 3 of 3 Next