Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc.,...
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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): $58,240 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 4,200 290 Fabricating Department 6,100 1,450 Packaging Department 10,500 1,160 Total maintenance hours 20,800 2,900 Actual usage for the year by: Assembly Department Fabricating Department 3,500 6,200 9,700 19,400 Packaging Department Total maintenance hours 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. Department Assembly Fabricating Packaging Total Peak Number of Hours 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 3,550 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 Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $58,240 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 4,200 290 Fabricating Department 6,100 1,450 Packaging Department 10,500 1,160 Total maintenance hours 20,800 2,900 Actual usage for the year by: Assembly Department Fabricating Department 3,500 6,200 9,700 19,400 Packaging Department Total maintenance hours 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. Department Assembly Fabricating Packaging Total Peak Number of Hours 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 3,550 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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