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,
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): $59,020 per year Variable costs (supplies): $1.40 per maintenance hour Estimated usage by: Assembly Department 4,500 Fabricating Department 7,000 Packaging Department 11,200 Total maintenance hours. 22,700 Actual usage by: Assembly Department 3,500 Fabricating Department 7,100 Packaging Department 10,400 Total maintenance hours 21,000 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 5,000 maintenance hours in the year? How much would have been 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started