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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): $63,510 per year
Variable costs (supplies): $1.50 per maintenance hour

Estimated usage by:
Assembly Department 4,600
Fabricating Department 6,000
Packaging Department 11,300
Total maintenance hours 21,900
Actual usage by:
Assembly Department 3,250
Fabricating Department 6,100
Packaging Department 10,500
Total maintenance hours 19,850

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 3,300 maintenance hours in the year? How much would have been charged out to the three departments?

Assembly Department charge $
Fabricating Department charge
Packaging Department charge
Total amount charged $

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