Question

Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $64,900 per year Variable costs (supplies): $1.35 per maintenance hour Estimated usage by: Assembly Department 4,500 Fabricating Department 6,700 Packaging Department 10,800 Total maintenance hours 22,000 Actual usage by: Assembly Department 3,960 Fabricating Department 6,800 Packaging Department 10,000 Total maintenance hours 20,760 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. $ per maintenance hour 2. Use the two rates to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. $ 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments? Assembly Department charge $ Fabricating Department charge Packaging Department charge Total amount charged $

Answer 1