Calculating and Using Dual Charging Kates The expected costs for the Maintenance Department of Stazler, Inc.,...
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Calculating and Using Dual Charging Kates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $80,640 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 Monthly hours Peak Hours Assembly Department 4,700 420 Fabricating Department 6,300 1,680 Packaging Department 11,400 700 Total maintenance hours 22,400 2,800 Actual usage for the year by: Assembly Department 3,250 Fabricating Department 6,400 Packaging Department 10,600 Total maintenance hours 20,250 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. per maintenance hour Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours. Round your answers to the nearest dollar. Peak Number of Hours Department Assembly Fabricating Packaging Total Allocated Fixed Cost 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. Round your answers to the nearest dollar. Assembly Fabricating Packaging Total 3. What if the Assembly Department used 3,300 maintenance hours in the year? How much would have been charged out to the three departments? Round your answers to the nearest dollar. Assembly Fabricating Packaging Total Calculating and Using Dual Charging Kates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $80,640 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 Monthly hours Peak Hours Assembly Department 4,700 420 Fabricating Department 6,300 1,680 Packaging Department 11,400 700 Total maintenance hours 22,400 2,800 Actual usage for the year by: Assembly Department 3,250 Fabricating Department 6,400 Packaging Department 10,600 Total maintenance hours 20,250 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. per maintenance hour Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours. Round your answers to the nearest dollar. Peak Number of Hours Department Assembly Fabricating Packaging Total Allocated Fixed Cost 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. Round your answers to the nearest dollar. Assembly Fabricating Packaging Total 3. What if the Assembly Department used 3,300 maintenance hours in the year? How much would have been charged out to the three departments? Round your answers to the nearest dollar. Assembly Fabricating Packaging Total
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Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
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