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Tasman Products. Limited, 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: Budget Actual Variable costs for lubricants $ 355,266* $ 455,760 Fixed costs 'For' salaries and other $ 264,686 $ 219,490 'Budgeted at $24 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage OF Peak- Machine-Hours Period Capacity Required Budget Actual Forming Department 64% 9,766 11,700 Assembly Department 36% 5,186 4,186 Total 196% 14, 800 15, 866 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, ofthe 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? Total cost charged 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 _

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