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Problem 11-18 (Algo) Service Department Charges (LO11-4) Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department

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Problem 11-18 (Algo) Service Department Charges (LO11-4) Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: variable costs for lubricants Fixed costs for salaries and other Budget $333, 900 $182,000 Actual $428,070 $195,200 Budgeted at $21 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Forming Department Assembly Department Total Peak Period Capacity Required 640 361 1008 Machine-Hours Budget Actual 10,400 12,400 5,500 6.500 15,900 16.900 The level of fixed costs in the Maintenance Department is determined by peak period requirements. Required: 1. How much Maintenance Denart Forning Department Assembly Department Total 648 360 10,400 5,500 15,900 12,400 4,500 16,900 100 The level 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 actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 2 Required 1 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Forming Department 376,880 Assembly Department $ 70.272 Total cost charged Required 2 > SEM Forning Department Assembly Department Total 648 368 1001 10,400 5.500 15,900 12,400 4,500 16,900 The level 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 actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 3 Required 1 Required 2 How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments? Spending variance 81,618 Required 1

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