ok 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. Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are budgeted at $662,100 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costs and $668,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 606 Milling 287 Assembly 916 Actual number of employees for the most recent year 506 387 816 Long-run average number of employees 960 640 1,600 Required: ces 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. Required 1 Required 2 Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Cutting Milling Assembly Medical services department charges
ok 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. Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are budgeted at $662,100 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costs and $668,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 606 Milling 287 Assembly 916 Actual number of employees for the most recent year 506 387 816 Long-run average number of employees 960 640 1,600 Required: ces 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. Required 1 Required 2 Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Cutting Milling Assembly Medical services department charges
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are
budgeted at $662,100 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costs
and $668,000 for fixed costs. Data concerning employees in the three operating departments follow:
Budgeted number of employees
Cutting
606
Milling
287
Assembly
916
Actual number of employees for the most
recent year
506
387
816
Long-run average number of employees
960
640
1,600
Required:
ces
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.
Required 1 Required 2
Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and
Assembly.
Cutting
Milling
Assembly
Medical services department charges](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fafa4a2cf-2a20-4500-a8d8-e286335b4eb7%2Fbd99bd75-ce0f-4bd4-974a-8173f7e71897%2Farlzuuk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ok
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.
Variable Medical Services Department costs are budgeted at $59 per employee. Fixed Medical Services Department costs are
budgeted at $662,100 per year. Actual Medical Services Department costs for the most recent year were $106,200 for variable costs
and $668,000 for fixed costs. Data concerning employees in the three operating departments follow:
Budgeted number of employees
Cutting
606
Milling
287
Assembly
916
Actual number of employees for the most
recent year
506
387
816
Long-run average number of employees
960
640
1,600
Required:
ces
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.
Required 1 Required 2
Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and
Assembly.
Cutting
Milling
Assembly
Medical services department charges
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