Problem 11-18 (Algo) Service Department Charges [LO11-4] Tasman Products, Limited, of Australia has a Maintenance...
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Problem 11-18 (Algo) Service Department Charges [LO11-4] 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 machinehours. 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: Data for the Forming and Assembly Departments follow: The level of fixed costs In the MaIntenance Department is determined by peak-perlod 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 varlance and not charged to the Forming and Assembly departments? Complete this question by entering your answers in the tabs below. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department
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