Tasman Products, Limlted, of Australla 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:

$*$Budgeted at $$21$ per machine$-$hour.

Data for the Forming and Assembly Departments follow:

The level of fixed costs in the Maintenance Department is determined by peak$-$perlod requirements.

Required:

How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department?

How much, If any, of the actual Malntenance Department costs for the year should be treated as a spending varlance and not

charged to the Forming and Assembly departments?

Complete this question by entering your answers in the tabs below.

How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department?