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 $699,500 per year . Actual Medical Services Department costs for the most recent year were $106,200 for variable costs and $705,000 for fixed costs. Dato concerning employees in the three operating departments follow: Cutting Milling Assembly Budgeted number of employees Actual number of employees for the most 507 388 Long-run average number of employees 420 1,050 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? 607 288 905 recent year 805 630 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 Assembly Medical services department charges Required Required 2 > Korvanls 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 $699,500 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costs and $705,000 for fixed costs. Data concerning employees in the three operating departments follow Cutting Milling Assembly Budgeted number of employees 607 288 905 Actual number of employees for the most recent year 507 388 805 Long-run average number of employees 630 420 1,050 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? Complete this question by entering your answers in the tabs below. Required 1 Required 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? Spending variance
