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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,
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): $71,175 per year Variable costs (supplies): $1.45 per maintenance hour Estimated usage by: Assembly Department 4,600 Fabricating Department 6,600 Packaging Department 10,700 Total maintenance hours 21,900 Actual usage by: Assembly Department 3,675 Fabricating Department 6,700 Packaging Department 9,900 Total maintenance hours 20,275 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. 3.25 X 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 X 102,930 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. 16,250 X Assembly Department charge 21,450X Fabricating Department charge 34,775X Packaging Department charge 72,475 X Total amount charged Feedback Check My Work 1. Single charging rate combines variable and fixed costs of the support department. Budgeted fixed and variable costs are in the numerator and budgeted usage is in the denominator. 2. Actual usage by using departments is multiplied by the charging rate to get the amount charged 3. Calculate as in Requirement 2 and change the Assembly Department's usage to 5,000
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