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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): $62,415 per year Variable costs (supplies): $1.45 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: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage for the year by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Yearly hours 4,500 6,300 11,100 21,900 Monthly Peak Hours 3,750 6,400 10,300 20,450 330 1,210 660 2,200
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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 peak month usage in maintenance hours. Round your answers to the nearest dollar. 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. 3. 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. 3. 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. 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): $62,415 per year Variable costs (supplies): \$1.45 per maintenance hour The Assernbly 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

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