Problem 11-22 (Algo) Service Department Charges [LO11-4) BOOK Sharp Motor Company has two operating divisions--an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $89,000 per month plus $0.50 per meal served, The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak period requirements. The Auto Division is responsible for 65% of the peak- period requirements, and the Truck Division is responsible for the other 35% For June, the Auto Division estimated it would need 86,000 meals served, and the Truck Division estimated it would need 56,000 meals served. However, due to unexpected layoffs of employees during the month, only 56,000 meals were served to the Auto Division. Another 56,000 meals were served to the Truck Division as planned. The cafeteria's actual fixed costs for June totaled $93.000 and its actual meal costs totaled 575.000 Required: 1. How much cafetera cost should be charged to each division for June? 2. Assume the company follows the practice of allocating all cafeteria costs incurred each month to the divisions in proportion to the number of meals served to each division during the month On this basis, how much cost would be allocated to each division for June? (Round your intermediate calculations to 2 decimal places.) Print .. Auto Division Truck Division 1. Total cost charged 2 Todos located 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 Budget Actual Variable costs for bricants $268, 200* 3342,660 Fixed costs for salaries and other 5202,000 $217.200 "Budgeted at $18 per machine hour. Data for the Forming and Assembly Departments follow. Terences Percentage of Peak Period Capacity Required UN Forning Department Assembly Departat Total Machines Budget Actual 9.70 11.00 5.200 4,200 14.000 15,900 The level of foxed 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 muchawy, 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 to entering your answers in the tabs below. Red wth and Department to be charged to the foeming Department and to the Assembly Department ng Department bly Department 1 reak-Period Capacity Required 65% 35% Budget 9,700 5,200 14,900 Actual 11,700 4,200 15,900 100% Hevel of fixed costs in the Maintenance Department is determined by peak-period requirements. quired: How much Maintenance Department cost should be charged to the Forming Department and to the Asser How much, if any, of the actual Maintenance Department costs for the year should be treated as a spendir arged 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 Assembly Depart Forming Assembly Department Department Total cost charged Rogo Required 2 > 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 2. How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending v- 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 charged to the Forming and Assembly departments? Spending variance