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Tasman Products has a Maintenance Department that services equipment in the companys Forming Department and...

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Accounting

Tasman Products has a Maintenance Department that services equipment in the companys Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours.

Data for the Maintenance Department follow:

image

The amount 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?
image

2. How much, if any, of the Maintenance Departments actual costs should be treated as a spending variance and not charged to the Forming and Assembly departments?

image Data for the Forming and Assembly Departments follow: 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? Complete this question by entering your answers in the tabs below. How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance and not charged to the Forming and Assembly departments
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