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Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs ( salaries

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Calculating and Using Dual Charging Rates
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:
Fixed costs (salaries, tools): $63,840 per year
Variable costs (supplies): $1.35 per maintenance hour
The Assembly 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
hours Monthly
Peak Hours
Assembly Department 4,500345
Fabricating Department 7,0001,265
Packaging Department 10,900690
Total maintenance hours 22,4002,300
Actual usage for the year by:
Assembly Department 3,750
Fabricating Department 7,100
Packaging Department 10,100
Total maintenance hours 20,950
Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent.
per maintenance hour
Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours. Round your answers to the nearest dollar.
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.
What if the Assembly Department used 3,800 maintenance hours in the year? How much would have been charged out to the three departments? Round your answers to the nearest dollar.
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