4 Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are budgeted at $643,700 per year. Actual Medical Services Department costs for the most recent year were $106,000 for variable costs and $649,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees Cutting 600 500 750 Milling 293 393 500 Assembly 901 801 1,250 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting. Milling, and Assembly, 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments?
4 Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are budgeted at $643,700 per year. Actual Medical Services Department costs for the most recent year were $106,000 for variable costs and $649,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees Cutting 600 500 750 Milling 293 393 500 Assembly 901 801 1,250 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting. Milling, and Assembly, 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments?
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![Exercise 11-15 (Algo) Service Department Charges [LO11-4]
Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for
the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for
the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating
department.
ces
Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are
budgeted at $643,700 per year. Actual Medical Services Department costs for the most recent year were $106,000 for variable costs
and $649,000 for fixed costs. Data concerning employees in the three operating departments follow:
Budgeted number of employees
Actual number of employees for the most
recent year
Long-run average number of employees.
Cutting
600
500
750
Medical services department charges
Cutting
Milling
293
Required:
1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and
Assembly,
2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not
charged to the operating departments?
Complete this question by entering your answers in the tabs below.
393
500
Required 1
Assembly
901
Required 1 Required 2
Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and
Assembly
Milling
801
1,250
Assembly
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e34cc5e-e74f-42f4-a792-f5deb0f6ebb5%2F0a5a7cc6-fff3-44ba-9a73-0decc59a9119%2F8edeidk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-15 (Algo) Service Department Charges [LO11-4]
Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for
the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for
the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating
department.
ces
Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are
budgeted at $643,700 per year. Actual Medical Services Department costs for the most recent year were $106,000 for variable costs
and $649,000 for fixed costs. Data concerning employees in the three operating departments follow:
Budgeted number of employees
Actual number of employees for the most
recent year
Long-run average number of employees.
Cutting
600
500
750
Medical services department charges
Cutting
Milling
293
Required:
1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and
Assembly,
2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not
charged to the operating departments?
Complete this question by entering your answers in the tabs below.
393
500
Required 1
Assembly
901
Required 1 Required 2
Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and
Assembly
Milling
801
1,250
Assembly
Required 2 >
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