. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. $fill in the blank 1 per maintenance hour Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours. Round your answers to the nearest dollar. 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 3,300 maintenance hours in the year? How much would have been charged out to the three departments? Round your answers to the near
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:
| Fixed costs (salaries, tools): $80,850 per year |
| Variable costs (supplies): $1.3 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 | 250 | ||
| Fabricating Department | 7,000 | 1,375 | ||
| Packaging Department | 11,400 | 875 | ||
| Total maintenance hours | 23,100 | 2,500 |
Actual usage for the year by:
| Assembly Department | 3,250 |
| Fabricating Department | 7,100 |
| Packaging Department | 10,600 |
| Total maintenance hours | 20,950 |
Required:
1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent.
$fill in the blank 1 per maintenance hour
Calculate the allocated fixed cost for each using department based on its budgeted peak month usage in maintenance hours. Round your answers to the nearest dollar.
| 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 3,300 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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