Please do not give solution in image format thanku Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments forthe variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges forthe fixed costs of the Medical Services Department are based on the long-run average number of employees in each operatingdepartment.Variable Medical Services Department costs are budgeted at $57 per employee. Fixed Medical Services Department costs arebudgeted at $624,700 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costsand $630,000 for fixed costs. Data concerning employees in the three operating departments follow:Budgeted number of employeesActual number of employees for the mostrecent yearLong-run average number of employeesCutting Milling620292Medical services department charges520750Cutting392500Required:1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, andAssembly.2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and noticharged to the operating departments?Complete this question by entering your answers in the tabs below.Assembly905Required 1 Required 2Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, andAssembly.Milling8051,250AssemblyRequired 2 department.Variable Medical Services Department costs are budgeted at $57 per employee. Fixed Medical Services Department costs arebudgeted at $624,700 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costsand $630,000 for fixed costs. Data concerning employees in the three operating departments follow:Budgeted number of employeesActual number of employees for the mostrecent yearLong-run average number of employeesCutting620520750Milling292392500Assembly905< Required 1Required:1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, andAssembly.2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and notcharged to the operating departments?Complete this question by entering your answers in the tabs below.8051,250Required 1Required 2How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance andnot charged to the operating departments?Spending varianceRequired 2 >

The total cost of production of a good comprises of the total fixed cost of production and the total…

Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating 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 $57 per employee. Fixed Medical Services Department costs are budgeted at $624,700 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costs and $630,000 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 620 520 750 Milling 292 392 500 Assembly 905 805 1,250 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and I 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.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q