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 $56 per employee. Fixed Medical Services Department costs are budgeted at $698,100 per year. Actual Medical Services Department costs for the most recent year were $106,700 for variable costs and $704,000 for fixed costs. Data concerning employees in the three operating departments follow: Cutting 604 Milling Assembly 908 296 Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees 504 960 396 640 808 1,600 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departmentsCutting, 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 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