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need some help Exercise 11-15 (Algo) Service Department Charges [LO11-4] Korvanis Corporation operates a Medical Services Deparment for its employees. Charges to the company's operating
need some help
Exercise 11-15 (Algo) Service Department Charges [LO11-4] Korvanis Corporation operates a Medical Services Deparment for its employees. Charges to the company's operating departments for the vartable 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 deparment: Varlable Medical Services Department costs are budgeted at $58 per employee. Fixed Medical Services Department cosis are budgeted at $624,600 per year. Actual Medical Services Department costs for the most recent year were $105,500 for varlable costs and $630,000 for fixed costs. Data concerning employees in the three operating deparments follow: Required: Tetermine the Medical Services Department charges for the year to each of the operating departments Cutting; Muing, 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 bolow. Assembly Exercise 11-15 (Algo) Service Department Charges [LO11-4] Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the varlable 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 $58 per employee. Fixed Medical Services Department costs are budgeted at $624,600 per year. Actual Medical Services Department costs for the most recent year were $105,500 for variable costs and $630,000 for fixed costs. Data concerning employees in the three operating departments follow: Required: 1. Detemine the Medical Services Department charges for the year to each of the operating departments-Cutting, Mulling. 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 operaung departments? Complete this question by entering your answers in the tabs below. How much. if any of the actuol Medical services Deparment costs for the yearshould be treated ax a spending variance and not charged to the operating departiments Step by Step Solution
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