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Help Save Joe Biden Ltd. has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this
Help Save Joe Biden Ltd. 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 Budget Actual $325,609 $417,280 $182,000 $195,208 28 "Budgeted at $22 per machine-hour Data for the Forming and Assembly Departments follow Forming Department Assembly Department Total Percentage of Peak Period Capacity Required 67% 33% 100% Machine-Hours Budget Actual 10,200 12,200 4.600 14,809 15,800 3,600 The level of fixed costs in the Maintenance Department is determined by peak period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments? Prey 1 of 2 Next ducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/a mi Saved Help Capacity Required 67% Forming Department Assembly Department Total 33% 100% Budget 10,209 4,600 14,800 Actual 12,290 3,689 15,800 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments? Complete this question by entering your answers in the tabs below. Required 1 Required 2. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Forming Assembly Department Department Total cost charged Required 2 > Forming Department Assembly Department Total 67% 33% 100% 10,200 4,600 14,800 12,200 3,600 15,800 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department 2. How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending variance and charged to the Forming and Assembly departments? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments? Spending variance
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