Bjornson A/S of Norway has only one service department'a cafeteria, in which meals are provided for employees in the company's Milling and Finishing departments. The costs of the cafeteria are all paid by the company as a fringe benefit to its employees. These costs are charged to the Milling and Finishing departments on the basis of meals served to employees in each department. Cost and other data relating to the Cafeteria and to the Milling and Finishing departments for the most recent year are provided below. (The Norwegian unit of currency is the krone, which is indicated below by K.)

Cafeteria:

Milling and Finishing departments:

The level of fixed costs in the Cafeteria is determined by peak-period requirements.
Required:
Management would like data to assist in comparing actual performance to planned performance in the Cafeteria and in the other departments.
1. How much Cafeteria cost should be charged to the Milling Department and to the Finishing Department?
2. Should any portion of the actual Cafeteria costs not be charged to the other departments? If so, compute the amount that should not be charged, and explain why it should not becharged.

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Budget Actual Variable costs for food 300,000K 384.000K Fixed costs...200,000K 215,000K Budgeted at 20K per meal served Number of Percent of Peak-Period Capacity Meals Served Required Budget Actual Milling Department Finishing Department Total 70% 30% 100% 10,000 12,000 5,000 4,000 15.000 16,000