1.
Forming deptt:
Variable cost = 12200 * 21
Variable cost = 256200
Fixed cost = 210000 * 72%
Fixed cost = 151200
Assembly deptt:
Variable cost = 4300 * 21
Variable cost = 90300
Fixed cost = 210000 * 28%
Fixed cost = 58800
Total variable cost = 256200 + 90300
Total variable cost = 346500
Total fixed cost = 151200 + 58800
Total fixed cost = 210000
2.
Amount to be taken as spending variance:
Variable cost | Fixed cost | Total | |
Total actual cost incurred | 417150 | 226000 | 643150 |
Total charges | 346500 | 210000 | 556500 |
Variance | 70650 | 16000 | 86650 |
Tasman Products, Ltd., of Australla has a Maintenance Department that services the equipment in the company's...
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other Budget $ 294,000* $210,000...
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 325,600 * $ 417,280 Fixed costs for...
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: 1. How much Maintenance Department cost should be charged to the Forming Department and...
Problem 11B-5 Service Department Charges (L011-6) Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries...
Problem 11B-5 Service Department Charges (LO11-6) Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Departmer and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost ar other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries...
Problem 11B-5 Service Department Charges [LO11-6] Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries...
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Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $66,465 per year Variable costs (supplies): $1.35 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearly hours...
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