Question: lculating and Using a Single Charging Rate The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries,

lculating 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): $82,440 per yearVariable costs (supplies): $1.30 per maintenance hourEstimated usage by:Assembly Department4,900Fabricating Department6,700Packaging Department11,300Total maintenance hours22,900Actual usage by:Assembly Department3,875Fabricating Department6,800Packaging Department10,500Total maintenance hours21,175

Required:

1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. $fill in the blank 1 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. $fill in the blank 2

3. What if the Assembly Department used 5,000 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$fill in the blank 3Fabricating Department chargefill in the blank 4Packaging Department chargefill in the blank 5Total amount charged$fill in the blank 6

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!