Calculating and Using a Single Charging Rate

The expected costs for the Maintenance Department of Stazler, Inc., for the coming yearinclude:

Fixed costs (salaries, tools): $70,720 per year

Variable costs (supplies): $1.40 per maintenance hour

Estimated usage by:
Assembly Department	4,700
Fabricating Department	6,600
Packaging Department	10,800
Total maintenance hours	22,100
Actual usage by:
Assembly Department	3,750
Fabricating Department	6,700
Packaging Department	10,000
Total maintenance hours	20,450

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 ifthe Assembly Department used 3,800 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	$