Business, 28.05.2021 14:00 tiffg3140

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): $59,920 per year
Variable costs (supplies): $1.3 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 4,400 300
Fabricating Department 6,400 1,650
Packaging Department 10,600 1,050
Total maintenance hours 21,400 3,000
Actual usage for the year by:
Assembly Department 3,750
Fabricating Department 6,500
Packaging Department 9,800
Total maintenance hours 20,050
Required:
1. Calculate a variable rate for the Maintenance Department.
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.
3. What if the Assembly Department used 3,550 maintenance hours in the year? How much would have been charged out to the three departments?

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Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Staz...

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