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Calculating 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): $70,525 per year

Variable costs (supplies): $1.45 per maintenance hour

Estimated usage by:
Assembly Department	4,600
Fabricating Department	6,200
Packaging Department	10,900
Total maintenance hours	21,700
Actual usage by:
Assembly Department	3,375
Fabricating Department	6,300
Packaging Department	10,100
Total maintenance hours	19,775

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 4,000 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 3
Fabricating Department charge	fill in the blank 4
Packaging Department charge	fill in the blank 5
Total amount charged	$fill in the blank 6

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