Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricante $271,800 $347,340 Fixed costs for salaries and other $193,000 $207,300 "Budgeted at $18 per machine-hour. Data for the Forming and Assembly Departments follow: Torming Department Assembly Department Total Percentage of Peak Period Capacity Required 698 311 1001 Machine-Hour Budget Actual 9.900 11.900 5.200 4,200 15,100 16.100 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 Red Required 2 > 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, 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? Spending variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

3rd Edition

047169195X, 978-0471691952

More Books

Students also viewed these Accounting questions

Question

What is adaptive integration? Why is it useful?

Answered: 1 week ago

Question

Fixed dollar match: 75 cents per each $1 employee contribution.

Answered: 1 week ago