Question: 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,

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

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): $62,150 per year Variable costs (supplies): $1.35 per maintenance hour Estimated usage by: Assembly Department 4,900 Fabricating Department 6,600 Packaging Department 11,100 Total maintenance hours 22,600 Actual usage by: Assembly Department 3,475 Fabricating Department 6,700 Packaging Department 10,300 Total maintenance hours 20,475 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. Actuat usage by: Assembly Department 3,475 Fabricating Department 6,700 Packaging Department 10,300 Total maintenance hours 20,475 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 4,000 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!