Cornerstone Exercise 7.2 Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: 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: Actual usage for the year by: Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. $ 0.75 per maintenance hour Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours. Department Peak Number of Hours Allocated Fixed Cost Assembly 390 $ 8580 Fabricating 1300 28600 Packaging 910 20020 Total 2600 $ 57200 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. Assembly $ 11550 Fabricating 33700 Packaging 27520 Total $ 72770 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments? Assembly $ 11580 Fabricating 33700 Packaging 27520 Total $ 72800