Calculating and using a Single Charging Rate The expected costs for the Maintenance Department of...
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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): $76,650 per year Variable costs (supplies): $1.30 per maintenance hour Estimated usage by: Assembly Department 4,800 Fabricating Department 6,200 Packaging Department 10,900 Total maintenance hours 21,900 Actual usage by: 3,275 Assembly Department Fabricating Department Packaging Department 6,300 10,100 Total maintenance hours 19,675 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 4,000 maintenance hours in the year? How much would have bee charged out to the three departments? When required, round your answers to the nearest dollar. Assembly Department charge Fabricating Department charge Packaging Department charge Total amount charged
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