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): $63,510 per year Variable costs (supplies): $1.50 per maintenance hour Estimated usage by:   Assembly Department 4,600   Fabricating Department 6,000   Packaging Department 11,300       Total maintenance hours 21,900 Actual usage by:   Assembly Department 3,250   Fabricating Department 6,100   Packaging Department 10,500       Total maintenance hours 19,850 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. $ per maintenance hour 2. Use this rate 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 3,300 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