Harris Company's two service departments provide the following data:

The two service departments serve three producing departments which show the following budgeted and actual cost and service-hours data:

Required:
(1) Compute a predetermined billing rate for each service department.
(2) Compute the amounts charged to the producing departments for services rendered. Use the predetermined billing rates computed for requirement 1.
(3) Compute spending and idle capacity variances for each service department, assuming fixed cost represents 70% of budgeted cost for the Carpenter Shop and 80% for Electricians.

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Monthly Budget Carpenter Shop.$20,000 30,000 Service-Hours Available 2.000 2,500 Actual Monthly Expense $19,800 28,900 Service Center Electricians..u Estimated Hours of Services Required Actual Hours of Services Used Benefiting Department Carpenter Shop Electricians 600 750 650 Carpenter Shop Electricians 900 1,000 600 400 800 450 1,000 850 550