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): $75,900 per year Variable costs (supplies): $1.3 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 4,600 270 Fabricating Department 6,900 1,620 Packaging Department 11,500 810 Total maintenance hours 23,000 2,700 Actual usage for the year by: Assembly Department 3,500 Fabricating Department 7,000 Packaging Department 10,700 Total maintenance hours 21,200 Required:

1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. 1 1.30 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.

Department Peak Number of Hours Allocated Fixed Cost Assembly fill in the blank 2 270 $fill in the blank 3 Fabricating fill in the blank 4 1,620 fill in the blank 5 Packaging fill in the blank 6 810 fill in the blank 7 Total fill in the blank 8 2,700 $fill in the blank 9 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. Round your answers to the nearest dollar. Assembly $fill in the blank 10 Fabricating fill in the blank 11 Packaging fill in the blank 12 Total $fill in the blank 13 3. What if the Assembly Department used 3,550 maintenance hours in the year? How much would have been charged out to the three departments? Round your answers to the nearest dollar. Assembly $fill in the blank 14 Fabricating fill in the blank 15 Packaging fill in the blank 16 Total $fill in the blank 17