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Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to
Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: *Budgeted at \$21 per machine-hour. Data for the Forming and Assembly Departments follow: The amount 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 Maintenance Department's actual costs should be treated as a spending variance and not charged to the Forming and Assembly departments? Required 1 Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? \begin{tabular}{|l|l|l|} \hline & \begin{tabular}{c} Forming \\ Department \end{tabular} & \begin{tabular}{c} Assembly \\ Department \end{tabular} \\ \hline Total cost charged & & \\ \hline \end{tabular} How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance and not charged to the Forming and Assembly departments
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