Tasman Products has a Maintenance Department that services equipment in the company's 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: Variable costs for lubricants Budget $ 364,800* Fixed costs for salaries and other $ 200,000 Actual $ 468,240 $ 215,000 *Budgeted at $24 per machine-hour. Data for the Forming and Assembly Departments follow: Forming Department Assembly Department Total Percentage of Peak- Period Capacity Machine-Hours Required Budget Actual 71% 9,900 11,900 29% 100% 5,300 4,300 15,200 16,200 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? 2. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Forming Assembly Department Department Total cost charged < Required 1 Required 2 >
Tasman Products has a Maintenance Department that services equipment in the company's 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: Variable costs for lubricants Budget $ 364,800* Fixed costs for salaries and other $ 200,000 Actual $ 468,240 $ 215,000 *Budgeted at $24 per machine-hour. Data for the Forming and Assembly Departments follow: Forming Department Assembly Department Total Percentage of Peak- Period Capacity Machine-Hours Required Budget Actual 71% 9,900 11,900 29% 100% 5,300 4,300 15,200 16,200 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? 2. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? Forming Assembly Department Department Total cost charged < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ashvinbhai
Transcribed Image Text:Tasman Products has a Maintenance Department that services equipment in the company's 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:
Variable costs for lubricants
Budget
$ 364,800*
Fixed costs for salaries and other
$ 200,000
Actual
$ 468,240
$ 215,000
*Budgeted at $24 per machine-hour.
Data for the Forming and Assembly Departments follow:
Forming Department
Assembly Department
Total
Percentage
of Peak-
Period
Capacity
Machine-Hours
Required
Budget
Actual
71%
9,900
11,900
29%
100%
5,300
4,300
15,200
16,200
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?
2. 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?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department?
Forming Assembly
Department Department
Total cost charged
< Required 1
Required 2 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education