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Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department of...

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Accounting

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): $64,900 per year
Variable costs (supplies): $1.35 per maintenance hour
Estimated usage by:
Assembly Department 4,500
Fabricating Department 6,700
Packaging Department 10,800
Total maintenance hours 22,000
Actual usage by:
Assembly Department 3,960
Fabricating Department 6,800
Packaging Department 10,000
Total maintenance hours 20,760
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 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.
$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?
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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