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Calculating and ung Dual Charging Rates The expected costs for the Maintenance Department of Starler, Inc., for the coming year indude e costs (salaries, tools):

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Calculating and ung Dual Charging Rates The expected costs for the Maintenance Department of Starler, Inc., for the coming year indude e costs (salaries, tools): $71,680 per year Variable (supples): 513 per maintenance hour The sembly 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 Monthly hours Peak Hours Assembly Department 5,000 330 Fabricating Department 6.200 1,210 Packaging Department 11,200 660 Total maintenance hours 22.400 2,200 Actual usage for the year by Assembly Department 3.250 Fabricating Department 6.300 Padaging Department 10,400 Total maintenance hours 19.950 Required: 1. Calculate a variable rate for the Maintenance Department Round your answer to the nearest cont. per maintenance Tour Calculate the allocated feed cost for each using department based on its budgeted peak month agen manne hours. Round your answer to the nearest dollar Department Peak Number of Hours Allocated Fixed Cost Assembly Ficating Packaging 3,250 6,300 Assembly Department Fabricating Department Packaging Department Total maintenance hours Required: 10,400 19,950 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent per maintenance hour Calculate the located foed cost for each using department based on its budgeted peak month usage in maintenance hours, Round your answers to the nearest dotar. Department Peak Number of Hours Allocated Fixed Cost Assembly Fabricating Packaging Total 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. Round your answers to the nearest dollar Assembly Fabricating Packaging Total 3. What if the Assembly Department used 3.500 maintenance hours in the year? How much would have been charged out to the three departments Round your answers to the rest o Assembly Fabricating Page Total

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