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$)$: $$77,745$ per year

Variable costs $($supplies$)$: $$1\mathrm{.}35$ 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:

$\backslash$table$[[,\backslash$table$[[$Yearly$],[$hours$]],\backslash$table$[[$Monthly$],[$Peak Hours$]]],[$Assembly Department,$4,200,420],[$Fabricating Department,$6,800,1,400],[$Packaging Department,$10,900,980],[$Total maintenance hours,$21,900,],[,,]]$

Actual usage for the year by:

$\backslash$table$[[$Assembly Department,$3,250],[$Fabricating Department,$6,900],[$Packaging Department,$10,100],[$Total maintenance hours,$20,{250}_{?}$