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Problem 11-18 (Algo) Service Department Charges [L011-4] Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The
Problem 11-18 (Algo) Service Department Charges [L011-4] Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: "Budgeted at \$20 per machine-hour. Data for the Forming and Assembly Departments follow: The amount of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2 How much, if any, of the Maintenance Department's actual costs should be treated as a spending varlance and not charged to the Forming and Assembly departments? Complete this question by entering vour answers in the tabs below. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance and not charged to the Forming and Assembly departments? Sharp Motor Company has a cafeteria that serves two operating divisions-an Auto DIvision and a Truck Division. The costs of operating the cafeterla are budgeted at $72,000 per month plus $0.50 per meal served. The fixed costs of the cafeterla are determined by peak-perlod requirements. The Auto Division Is responsible for 61% of the peak-period requirements, and the Truck Division is responsible for the other 39%. For June, the Auto Division estimated it would need 96,000 meals, and the Truck Division estimated it would need 66,000 meals. However, due to unexpected layoffs of employees during the month, only 66,000 meals were served to the Auto Division. Another 66,000 meals were served to the Truck Division as planned. The cafeterla's actual fixed costs for June totaled $82,000 and its actual meal costs totaled $80,000. Required: 1. How much cafeterla cost should be charged to each division for June? 2 Assume the company follows the practice of allocating all cafeterla costs to the divisions based on the number of meals served. On this basis, how much cost would be allocated to each division for June? Note: Round your Intermedlate calculations to 2 decimal places
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