The Medical Services Department's variable costs are budgeted at $55 per employee and its fixed costs are budgeted at $609,700per year. Actual Medical Services Department costs for the most recent year were $105,600 for variable costs and $615,000 for fixedcosts. Data concerning employees in the three operating departments follow:Budgeted number of employeesCutting612Milling285Assembly915Actual number of employees for the mostrecent year512385815Long-run average number of employees6304201,050Required:S1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged tooperating departments?Complete this question by entering your answers in the tabs below.Required 1 Required 2How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and notcharged to operating departments?Spending variance

The Medical Services Department's variable costs are budgeted at $55 per employee and its fixed costs are budgeted at $609,700 per year. Actual Medical Services Department costs for the most recent year were $105,600 for variable costs and $615,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 612 Milling 285 Assembly 915 Actual number of employees for the most recent year 512 385 815 Long-run average number of employees 630 420 1,050 Required: 1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged to operating departments? Complete this question by entering your answers in the tabs below.

The Medical Services Department's variable costs are budgeted at $55 per employee and its fixed costs are budgeted at $609,700 per year. Actual Medical Services Department costs for the most recent year were $105,600 for variable costs and $615,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 612 Milling 285 Assembly 915 Actual number of employees for the most recent year 512 385 815 Long-run average number of employees 630 420 1,050 Required: 1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged to operating departments? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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