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Tasman Products, Limited, of Australia hos a Maintenance Department that services the equipment in the...

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Accounting

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Tasman Products, Limited, of Australia hos 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 bosis of machinehours. Cost and osher doto reloting to the Maintenance Department and to the other two departments for the most resent yesr are. presented below Data for the Maintenance Department follow: "Budgeted at $24 per mochine-hour. Dota for the Forming and Assembly Departments follow: The level of fixed costs in the Mointenonce Department is determined by peak.peniod 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 actual Maintenance Department costs for the yeor should be treated as a spending variance and not charged to the forming ond Assembly departments

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