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Korvenis Corporation operates a Medical Services Deportment for its employees. Charges to the company's operating departments for the veriable costs of the Medical Services Department are bosed on the octuol number of employees in esch department. Charges for the fixed costs of the Medical Services Department are bosed on the long-run averoge number of employees in each operating depsrtment. Variable Medical Services Department costs are budgeted at $80 per employee. Fixed Medical Services Department costs are budgeted at $400,000 per year. Actual Medical Services Deportment costs for the most recent year were $41,000 for veriable costs and $408,000 for fixed costs. Dats concerning employees in the three operating deportments follow: Requlred: 1. Determine the Medical Services Deportment charges for the year to eoch of the operating deportments-Cutting, Milling, and Assembly. 2. How much, if any, of the octual Medical Services Department costs for the year should be trested as a spending variance and not charged to the operating departments? Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charqed to the operating departments

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