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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): $65,250 per year Variable costs (supplies): $1.4 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 4,700 280 Fabricating Department 6,700 1,680 Packaging Department 11,100 840 Total maintenance hours 22,500 2,800 Actual usage for the year by: Assembly Department 3,500 Fabricating Department 6,800 Packaging Department 10,300 Total maintenance hours 20,600

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): $66,900 per year Variable costs (supplies): $1.40 per maintenance hour Estimated usage by: Assembly Department 4,800 6,200 Fabricating Department Packaging Department 11,300 Total maintenance hours 22,300 Actual usage by: Assembly Department 3,325 Fabricating Department 6,300 Packaging Department 10,500 Total maintenance hours 20,125 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. $ 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. $ 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 Fabricating Department charge Packaging Department charge Total amount charged Department Peak Number of Hours Allocated Fixed Cost Assembly Fabricating Packaging Total 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. Round your answers to the nearest dollar. Assembly $ Fabricating Packaging Total 3. What if the Assembly Department used 3,550 maintenance hours in the year? How much would have been charged out to the three departments? Round your answers to the nearest dollar. Assembly Fabricating Packaging Total

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