required 2 only

Tosman Products, Limited, 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 Retual Variable costs for lubricants $ 300,000 $ 394,400 Fixed costs for salaries and other $ 183,000 $ 196,300 "Budgeted at $20 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak- Machine-ours Period Capacity Required Budget Actual Forming Department 608 10,100 12,100 Assembly Department 400 5,300 4,300 Total 1008 15,400 16,400 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