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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

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): $79,100 per year
Variable costs (supplies): $1.4 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 4,400270
Fabricating Department 6,9001,620
Packaging Department 11,300810
Total maintenance hours 22,6002,700
Actual usage for the year by:
Assembly Department 3,250
Fabricating Department 7,000
Packaging Department 10,500
Total maintenance hours 20,750
Required:
1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent.
$fill in the blank 1
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
$fill in the blank 3
Fabricating fill in the blank 4
fill in the blank 5
Packaging fill in the blank 6
fill in the blank 7
Total fill in the blank 8
$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 3,300 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

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