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 $345,600 $209,000 Actual $443,280 $224.900 "Budgeted at $24 per machine-hout. Data for the Forming and Assembly Departments follow: Percentage of Peak Period Capacity Required 638 376 1000 Machine Hours Budget Actual 9,800 11,800 4,600 3.600 14,400 15,400 Forning Department Assembly Department Total 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? Complete this question by entering your answers in the tabs below. Total 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 t 2. How much, if any, of the actual Maintenance Department costs for the year should be treated as charged to the Forming and Assembly departments? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Ass Forming Assembly Department Department Total cost charged (Required 1 Required 2 Forming Department Assembly Department Total Percentage of Peak-Period Capacity Required 638 378 1008 Machine-Hours Budget Actual 9,800 11,800 4,600 3,600 14,400 15,400 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? Complete this question by entering your answers in the tabs below. 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 Required 1 Required HE Neyt