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: Variable costs for lubricants Fixed costs for salaries and other Budget $367,200 $ 199,000 Actua $471, 360 $213,900 *Budgeted at $24 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak Period Capacity Required 651 Forming Department Assembly Department Total 12 100 200 16 300 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 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? Comnlete this question huante 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 Departmen Forming Assembly Department Department Total cost charged Required 2 > y al UNCIS 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 (Required 1