Leslie Company operates a cafeteria for the benefit of its employees. The company subsidizes the cafeteria heavily by allowing employees to purchase meals at greatly reduced prices. Budgeted and actual costs in the cafeteria for the year just ended are as follows:

	Budgeted	Actual
Variable costs*	$ 953,120	$ 935,740
Fixed costs	$ 356,000	$ 377,700

*Unrecovered cost after deducting amounts received from employees.

Costs of the cafeteria are charged to producing departments on the basis of the number of employees in these departments. Fixed costs are charged on the basis of the percentage of peak-period requirements. Data concerning the companys producing departments follows:

	Machining	Assembly	Total
Budgeted number of employees	715	765	1,480
Actual number of employees	560	660	1,220
Percentage of peak-period requirements	50%	50%	100%

Required:

a. Compute the dollar amount of variable and fixed costs that should be charged to each of the producing departments at the end of the year for purposes of evaluating performance.

b. Identify the amount, if any, of actual costs that should not be charged to the operating departments.