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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

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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 lubricants $257,400. $328,620 Fixed costs for salaries and other $185,000 $198,500 Budgeted at $18 per machine-hour Data for the Forming and Assembly Departments follow: Percentage of Peak Period Capacity Required 670 Forming Department Assembly Department Total Machine Hours Budget Actual 9,600 11,600 4.700 3,200 14,300 15,300 331 1001 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 Percentage of Peak-Period Capacity Required 678 331 1000 Forming Department Assembly Department Total Machine-Hours Budget Actual 9,600 11,600 4,700 3,700 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 Regulad 1 Required 2 > Percentage of Peak Period Capacity Required 678 336 100 Machine-Hours Budget Actual 9,600 11,600 4,700 3,700 14,300 15,300 Forming Department Assembly Department Total 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, 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

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