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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 S59 per employee. Fixed Medical Services Department costs are budgeted at S655,100 per year. Actual Medical Services Department costs for the most recent year were $105,100 for variable costs and $661,000 for fixed costs. Data concerning employees in the three operating departments follow: MillingAssembly Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees Cutting 602 502 660 290 390 440 905 805 1,100 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Cutting-Milling Medical services department charges 2. How much, if any, of the actual Medical Services Department costs for the year should not be charged to the operating departments?

Explanation / Answer

Solution:-

1.

Explanation:-

2.

Explanation:-

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Cutting Milling Assemble Medical service department charges 226148 154,030 375,045

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