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?

Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments fo the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges fo 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 $56 per employee. Fixed Medical Services Department costs are budgeted at $630,800 per year. Actual Medical Services Department costs for the most recent year were $105,100 for variable costs and $636,000 for fixed costs. Data concerning employees in the three operating departments follow: Cutting 608 Milling 286 Assembly 914 Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees 508 1,110 386 740 814 1,850 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? Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Cutting Milling Assembly Medical services department charges