req 1 & req2

3 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 10 points Data for the Maintenance Department follow: Budget Actual $390,000* $501,000 Variable costs for lubricants Fixed costs for salaries 218,000 $234,800 and other eBook Print Budgeted at $25 per machine-houn Data for the Forming and Assembly Departments follow: Reference Percentage of Machine-Hours Peak-Period Capacity Forming Department Assembly Department Total Required Budget Actual 10,300 12,300 5,300 4,300 15,600 16,600 70% 30% 100% 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? Complete this question by entering your answers in the tabs below. Required Required How much Maintenance Department cost should be charged to the Forming Department 2 and to the Assembly Department? ing Assembly Department Department Total cost charged Required1 Required 2