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): $68,480 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 hours	Monthly Peak Hours
Assembly Department	4,200		480
Fabricating Department	6,300		1,200
Packaging Department	10,900		720
Total maintenance hours	21,400		2,400

Actual usage for the year by:

Assembly Department	3,250
Fabricating Department	6,400
Packaging Department	10,100
Total maintenance hours	19,750

Required:

1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. $fill in the blank 1 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	Peak Number of Hours	Allocated Fixed Cost
Assembly	fill in the blank 2	$fill in the blank 3
Fabricating	fill in the blank 4	fill in the blank 5
Packaging	fill in the blank 6	fill in the blank 7
Total	fill in the blank 8	$fill in the blank 9