Problem 11B-5 Service Department Charges [LO11-6] 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: Actual Variable costs for lubricants Fixed costs for salaries and other Budget $312,900 $400,770 $180,000 $193,000 "Budgeted at $21 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak-Period Machine-Hours Capacity Required Budget Actual Forming Department Assembly Department Total 67% 33% 100% 9,600 5,300 14,900 11,600 4,300 15,900 The level of fixed costs in the Maintenance Department is determined by peak-period requirements Required Management would like data to assist in comparing actual performance to planned performance in the Maintenance Department and in the other departments