Exercise 11-15 (Algo) Service Department Charges [LO11-4] Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $55 per employee. Fixed Medical Services Department costs are budgeted at $662,500 per year. Actual Medical Services Department costs for the most recent year were $106,300 for variable costs and $668,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Actual number of employees for the Cutting 610 Milling 287 Assembly 913 most recent year 510 387 Long-run average number of employees 810 540 813 1,350 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Cutting Milling Medical services department charges $ 228,450 $ 154,885 Assembly $ 378,715 Exercise 11-15 (Algo) Service Department Charges [LO11-4] Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $55 per employee. Fixed Medical Services Department costs are budgeted at $662,500 per year. Actual Medical Services Department costs for the most recent year were $106,300 for variable costs and $668,000 for fixed costs. Data concerning employees in the three operating departments follow. Budgeted number of employees Actual number of employees for the Cutting 610 Milling 287 Assembly 913 most recent year 510 387 813 Long-run average number of employees 810 540 1,350 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Spending variance 12,2500