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Korvanis Corporation operates a Medical Services Department that charges its variable costs to operating departments...

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Accounting

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Korvanis Corporation operates a Medical Services Department that charges its variable costs to operating departments based on the actual number of employees in each department. It charges fixed costs to operating departments based on the long-run average number of employees. The Medical Services Department's variable costs are budgeted at $55 per employee and its fixed costs are budgeted at $612,200 per year. Actual Medical Services Department costs for the most recent year were $105,900 for variable costs and $618,000 for fixed costs. Data concerning employees in the three operating departments follow: Required: 1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged to operating departments

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