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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 $ 304,000 $389,200 Fixed costs for salaries and other $195.000 $209,500 "Budgeted at $20 per machine-hour Data for the Forming and Assembly Departments follow. Percentage of Peak Period Machine Hours Capacity Required Budget Actual Forming Department 708 9,900 11,900 Assembly Department 5,300 4,300 Total 1001 15,200 16,200 ces 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 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: Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Machine-Hours Forming Department Assembly Department Total Percentage of Peak Period Capacity Required 705 308 1008 Budget 9,900 5,300 15,200 Actual 11,900 4,300 16,200 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 RU Required to > Complete this question by entering your answers in the tabs below. Required 1 Requited 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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