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Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department f Stazler, Inc., for the coming year include: Fixed costs (salaries,
Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department f 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 6,700 Fabricating Department 10,800 Packaging Department 22,000 Total maintenance hours Actual usage by: Assembly Department 3,960 6,800 Fabricating Department 10,000 Packaging Department 20,760 Total maintenance hours Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answen the nearest cent. Vper maintenance hour 4.3 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 vear. s92,690 x Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent Vper maintenance hour 4.3 the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 2. Use the two rates to assign the costs of the Maintenance Department s92,690 X 3. What if the Assembly Department used 4,000 maintenance hours the year? How much would have been charged out to the three departments? 16,000 X Assembly Department charge 27,200 X Fabricating Department charge Packaging Department charge 13,500 X 83,200 X Total amount charged
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