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Tasman Products, Ltd. 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. nces Budget hatual Variable costs for lubricants $285,000 $364,500 Tixed costs for salaries and other $200,000 $215,000 Budgeted at $19 per machine-hour. Data for the Forming and Assembly Departments follow Percentage of Machine Hours Peak Period Capacity Required Budget Actual Torming Department GOL 10,200 12,200 Assembly Department 40 5.000 1,800 Total 1000 15,000 16.000 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 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? Complete this question by entering your answers in the tabs below. ht ences Required 1 Required 2 How much Maintenance Department cost should be charged to the Farming Department and to the Assembly Department? Forming Assembly Department 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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