. The expected costs for the Maintenance Department Fixed costs (salaries, tools): Variable costs (supplies): Estimated usage by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage by: Assembly Department Fabricating Department Packaging Department Total maintenance hours of Stazler, Inc., for the coming year include: $64,900 per year $1.35 per maintenance hour 4,500 6,700 10,800 22,000 3,960 6,800 10,000 20,760

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3. The expected costs for the Maintenance Department
Fixed costs (salaries, tools):
Variable costs (supplies):
Estimated usage by:
Assembly Department
Fabricating Department
Packaging Department
Total maintenance hours
Actual usage by:
Assembly Department
Fabricating Department
Packaging Department
Total maintenance hours
of Stazler, Inc., for the coming year include:
$64,900 per year
$1.35 per maintenance hour
4,500
6,700
10,800
22,000
3,960
6,800
10,000
20,760
i. Calculate a single charging rate for the Maintenance Department.
ii. 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.
Transcribed Image Text:3. The expected costs for the Maintenance Department Fixed costs (salaries, tools): Variable costs (supplies): Estimated usage by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage by: Assembly Department Fabricating Department Packaging Department Total maintenance hours of Stazler, Inc., for the coming year include: $64,900 per year $1.35 per maintenance hour 4,500 6,700 10,800 22,000 3,960 6,800 10,000 20,760 i. Calculate a single charging rate for the Maintenance Department. ii. 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.
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