Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company's...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664fe6edbbf14_493664fe6ed4d98e.jpg)
Transcribed Image Text:
Tasman 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: Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $21 per machine-hour. Budget $ 300,300 $ 181,000 Actual $384,390 $194,100 Data for the Forming and Assembly Departments follow. Percentage of Peak- Forming Department Assembly Department Total Period Machine-Hours Capacity Required 74% 26% Budget 9,600 4,700 Actual 11,600 3,700 100% 14,300 15,300 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. Required 1 Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Forming Assembly Department Department Total cost charged Required 2 > Tasman 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: Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $21 per machine-hour. Budget $ 300,300 $ 181,000 Actual $384,390 $194,100 Data for the Forming and Assembly Departments follow. Percentage of Peak- Forming Department Assembly Department Total Period Machine-Hours Capacity Required 74% 26% Budget 9,600 4,700 Actual 11,600 3,700 100% 14,300 15,300 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. Required 1 Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Forming Assembly Department Department Total cost charged Required 2 >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Selected information from Indigo Books & Music Inc.'s income statements for three recent years follows (dollars in thousands): Instructions (a) Calculate gross profit, and profit from operations, for...
-
Jane was the audit supervisor in charge of the audit of an advertising agency. Unfortunately, two other audit supervisors in the office resigned and moved on to other positions. Rather than hiring or...
-
How do recessions impact continuous improvements in project management?
-
3. In year 0, SmoothCo has $50 million in cash and $50 million in inventory, financed by $100 million in equity. In year 1, the company records $100 million in revenue, $80 million in operating...
-
Two blocks of unequal mass are connected by a string over a smooth pulley (Figure 2-B). If the coefficient of kinetic friction is μv what angle θ of the incline allows the masses to move at...
-
Decision-makers must establish their needs and discover what data will help them to answer their queries. This data can be attained from a variety of sources, but these sources can be divided into...
-
Spray drying is a process in which a liquid containing dissolved or suspended solids is injected into a chamber through a spray nozzle or centrifugal disk atomizer. The resulting mist is contacted...
-
23) Historically, police and prosecutor discretion in the area of domestic violence has been problematic in part because the matter was considered a family issue to be resolved privately and outside...
-
List and describe three common interview mistakes which compromise the quality of the selection process.
-
Player I chooses a positive integer x > 0 and player II chooses a positive integer y > 0. The player with the lower number pays a dollar to the player with the higher number unless the higher number...
-
1. Distinguish between risk management and risk transfer. As the manager of XYZ FBO, what measures would you put in place to ensure risk reduction?
-
Devlop a sumary of your understanding of Learning and Retention. In the sumary, think about how you see Learning and Retention fitting into the entire study of Organizational Behavior. How does the...
-
Emani, Peters and Desai et al (2018) "conducted a cross-sectional survey of adopters and non-adopters of the portal...the survey consisted of perceived attributes from the DOI theory,...
-
If you were involved in a civil trial that would be decided by 6 jurors, would you want jurors who had the same ethnicity deciding your case?
-
Which of the following streaming TV devices does not involve use of a remote controller? A) Google Chromecast B) Apple TV C) Amazon Fire TV D) Roku
-
E19.4. Z-Scoring (Easy) Below are ratios for some of the firms that have appeared in this book, for their 1998 fiscal year. Working Retained Capital Earnings Earnings before Interest and Taxes Market...
-
Fruit of the Loom Ltd. fared poorly from 1997 to 1999. Between April 1997 and October. 1999, its stock price dropped from $38 to $3, a 92 percent loss in market value. Fruit of the Loom manufactures...
-
CI9.9. What is a default strategy?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App