Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculating and using Dual Charging Rates The expected costs for the Maintenance Department of Stazier, Inc., for the coming year include: Fixed costs (salaries, tools):

image text in transcribed
image text in transcribed
image text in transcribed
Calculating and using Dual Charging Rates The expected costs for the Maintenance Department of Stazier, Inc., for the coming year include: Fixed costs (salaries, tools): $64,900 per year Variable costs (supplies): $1.35 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively everly 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 Monthly Hours Peak Hours Assembly Department 4,500 390 6,700 1,300 Fabricating Department Packaging Department 10.800 910 22,000 Total maintenance hours 2, doo Actual usage for the year by: 3,960 Assembly Department Fabricating Department Packaging Department 6,800 10,000 20,760 Total maintenance hours PREVIS 6:44 PM de HA Required: 1. 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 proak month usage in maintenance hours, Department Peak Number of Hours Allocated Fixed Cost Assembly Fabricating Packaging Total 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 year Assembly Fabricating Packaging Total 3. What If the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the met departments Assembly Next) 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments Assembly Fabricating Packaging Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

28th Edition

9781337902687

Students also viewed these Accounting questions