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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: Variable costs for lubricants Fixed conta for salaries and other Budget Actual $333,900 $428,070 $182,000 $195,200 "Budgeted at $21 per machine-hour. Data for the Forming and Assembly Departments follow: Machine Hours Forming Department Rasebly Department Total Dercentage of Peak Period Capacity Required 641 361 1000 Budget 10,400 5,500 15,900 Ketual 12,400 4,500 16,900 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 the hai... 8 and 11(1) Saved Help Save c Machine Hours Torning Department Assembly Department Total Percentage of Peak-Period Capacity Required 648 369 1000 Budget 10,400 5,500 15,900 Actual 12,400 4,500 16,900 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? Farming Assembly Department Department Total cost charged Required 2 > 5 48 and 1100 Seved Help 5 Machine-Hours Forming Department Assembly Department Total Percentage of Peak Period Capacity Required 648 368 1001 Budget 10,400 5,500 15,900 Actual 12,400 4,500 16,900 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 Required 1 Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $81,000 per month plus $0.50 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 63% of the peak- period requirements, and the Truck Division is responsible for the other 37% For June, the Auto Division estimated it would need 92.000 meals served, and the Truck Division estimated it would need 62,000 meals served. However, due to unexpected layoffs of employees during the month, only 62,000 meals were served to the Auto Division. Another 62,000 meals were served to the Truck Division as planned. The cafeteria's actual fixed costs for June totaled $86,000 and its actual meal costs totaled $79,000 Required: 1. How much cafeteria cost should be charged to each division for June? 2. Assume the company follows the practice of allocating all cafeteria costs incurred each month to the divisions in proportion to the number of meals served to each division during the month. On this basis, how much co we be allocated to each division for June? (Round your intermediate calculations to 2 decimal places.) ces Auto Division Truck Division 1. Total cost charged 2 Total cost allocated

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