Korvanis Corporation operates a Medical Services Department that charges its variable costs to operating departments based on the actual number of employees in each department. It charges fixed costs to operating departments based on the long-run average number of employees.

The Medical Services Department's variable costs are budgeted at $59 per employee and its fixed costs are budgeted at $688,300 per year. Actual Medical Services Department costs for the most recent year were $106,700 for variable costs and $694,000 for fixed costs. Data concerning employees in the three operating departments follow:

For Cutting, the budgeted number of employees is 606, the actual number of employees for the most recent year is 506 and the long run average number of employees is 720.

For Milling, the budgeted number of employees is 290, the actual number of employees for the most recent year is 390, and the long run average number of employees is 480.

For Assembly, the budgeted number of employees is 916, the actual number of employees for the most recent year is 816 and the long run average number of employees is 1200.

1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly.
2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged to operating departments?