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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):
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): $64,900 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 Monthly Peak Hours Hours Assembly Department 4,500 390 Fabricating Department 6,700 1,300 Packaging Department 10,800 910 Total maintenance hours 22,000 2,600 Actual usage for the year by: Assembly Department 3,960 Fabricating Department 6,800 Packaging Department 10,000 Total maintenance hours 20,760 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): $64,900 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 Monthly Peak Hours Hours Assembly Department 4,500 390 Fabricating Department 6,700 1,300 Packaging Department 10,800 910 Total maintenance hours 22,000 2,600 Actual usage for the year by: Assembly Department 3,960 Fabricating Department 6,800 Packaging Department 10,000 Total maintenance hours 20,760
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