Question
Cornerstone Exercise 7.1 (Algorithmic) Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department of Stazler, Inc., for the coming year
Cornerstone Exercise 7.1 (Algorithmic) Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $77,745 per year Variable costs (supplies): $1.35 per maintenance hour Estimated usage by: Assembly Department 4,500 Fabricating Department 6,000 Packaging Department 10,800 Total maintenance hours 21,300 Actual usage by: Assembly Department 3,250 Fabricating Department 6,100 Packaging Department 10,000 Total maintenance hours 19,350 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. $ per maintenance hour 2. Use this rate 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. $ 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? Assembly Department charge $ Fabricating Department charge Packaging Department charge Total amount charged $
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