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I need help with both requirements Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost
I need help with both requirements Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly
Department. The cost of this servicing is charged to the operating departments based on machinehours.
Data for the Maintenance Department follow:
Budgeted at $ per machinehour.
Data for the Forming and Assembly Departments follow:
The amount of fixed costs in the Maintenance Department is determined by peakperiod requirements.
Required:
How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department?
How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance and not charged to the
Forming and Assembly departments?
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