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 varlable costs are budgeted at $$55$ per employee and its fixed costs are budgeted at $$626,700$

per year. Actual Medical Services Department costs for the most recent year were $$106,600$ for varlable costs and $$632,000$ for fixed

costs. Data concerning employees in the three operating departments follow:

Required:

Calculate the Medical Services Department charges to each of the operating departments$-$Cutting, Milling, and Assembly.

How much, If any, of the Medical Services Department's actual costs should be treated as a spending varlance and not charged to

operating departments?

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Required $2$

Calculate the Medical Services Department charges to each of the operating departments$-$Cutting, Milling, and Assembly.