IUTO Us mployees. Charges to the s of the Medical Services Department ar for the fixed costs of the of employees in each ACCOUNTING EXERCISE 6-1 Service Department Charges (L02] Korvanis Corporation operates a Medical Services Department for its employees. Ch company's operating departments for the variable costs of the Medical Services based on the actual number of employees in each department. Charges for the fixed Medical Services Department are based on the long-run average number of employees operating department. Variable Medical Services Department costs are budgeted at $80 per employee. Fixed Services Department costs are budgeted at $400,000 per year. Actual Medical Services D. costs for the most recent year were $41,000 for variable costs and $408,000 for fixed coste concerning employees in the three operating departments follow: per employee. Fixed Medical Medical Services Department Cutting Milling Assembly 170 100 280 Budgeted number of employees .......... Actual number of employees for the most recent year. ....... ..... Long-run average number of employees.... 80 150 180 120 270 300 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 not be charged to the operating departments