Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly...

Transcribed Image Text:

Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $21 per machine-hour Budget $ 308,700 $ 219,000 Actual $395,310 $ 235,900 Data for the Forming and Assembly Departments follow: Percentage of Peak- Forming Department Assembly Department Total Period Machine-Hours Capacity Required Budget Actual 71% 9,600 11,600 29% 100% 5,100 4,100 14,700 15,700 The amount 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 Maintenance Department's actual costs 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 Required 1 Required 2 > Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: Budget $308,700 Actual $395,310 $ 219,000 $ 235,900 Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $21 per machine-hour Data for the Forming and Assembly Departments follow. Percentage of Peak- Forming Department Assembly Department Total Period Machine-Hours Capacity Required Budget Actual 71% 9,600 11,600 29% 100% 5,100 4,100 14,700 15,700 The amount 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 Maintenance Department's actual costs 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 Maintenance Department's actual costs should be treated as a spending variance and not charged to the Forming and Assembly departments? Spending variance Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $21 per machine-hour Budget $ 308,700 $ 219,000 Actual $395,310 $ 235,900 Data for the Forming and Assembly Departments follow: Percentage of Peak- Forming Department Assembly Department Total Period Machine-Hours Capacity Required Budget Actual 71% 9,600 11,600 29% 100% 5,100 4,100 14,700 15,700 The amount 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 Maintenance Department's actual costs 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 Required 1 Required 2 > Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: Budget $308,700 Actual $395,310 $ 219,000 $ 235,900 Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $21 per machine-hour Data for the Forming and Assembly Departments follow. Percentage of Peak- Forming Department Assembly Department Total Period Machine-Hours Capacity Required Budget Actual 71% 9,600 11,600 29% 100% 5,100 4,100 14,700 15,700 The amount 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 Maintenance Department's actual costs 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 Maintenance Department's actual costs should be treated as a spending variance and not charged to the Forming and Assembly departments? Spending variance