Question: Calculating and using a Single Charging Rate The expected costs for the Maintenance Department of Stazier, Inc., for the coming year include: Fixed costs (salaries,

 Calculating and using a Single Charging Rate The expected costs for
the Maintenance Department of Stazier, Inc., for the coming year include: Fixed

Calculating and using a Single Charging Rate The expected costs for the Maintenance Department of Stazier, Inc., for the coming year include: Fixed costs (salaries, tools): $60,155 per year Variable costs (supplies): $1.45 per maintenance hour Estimated usage by: Assembly Department 5,000 Fabricating Department 6,200 Packaging Department 11,500 Total maintenance hours 22,700 Actual usage by: 3,625 Assembly Department Fabricating Department Packaging Department 6,300 10,700 Total maintenance hours 20,625 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. 1.45 X 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 5,000 maintenance hours in the year? How much would have been charged out to the three departments? When required, round your answers to the nearest dollar. Assembly Department charge Fabricating Department charge Packaging Department charge Total amount charged

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!