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): $67,710 per year Variable costs (supplies): $1.45 per maintenance hour Estimated usage by: Assembly Department 4,800 Fabricating Department 6,800 Packaging Department 10,600 Total maintenance hours 22,200 Actual usage by: Assembly Department 3,550 Fabricating Department 6,900 Packaging Department 9,800 Total maintenance hours 20,250 Required: Kequired: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. X 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 maintenan for the year 3. What if the Assembly Department used 5,000 maintenance hours in the year? How much would have been charged out to the three departments? When requirec round your answers to the nearest dollar. Assembly Department charge Fabricating Department charge Packaging Departmenttharge Total amount charged
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): $67,710 per year Variable costs (supplies): $1.45 per maintenance hour Estimated usage by: Assembly Department 4,800 Fabricating Department 6,800 Packaging Department 10,600 Total maintenance hours 22,200 Actual usage by: Assembly Department 3,550 Fabricating Department 6,900 Packaging Department 9,800 Total maintenance hours 20,250 Required: Kequired: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. X 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 maintenan for the year 3. What if the Assembly Department used 5,000 maintenance hours in the year? How much would have been charged out to the three departments? When requirec round your answers to the nearest dollar. Assembly Department charge Fabricating Department charge Packaging Departmenttharge Total amount charged
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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): $67,710 per year
Variable costs (supplies): $1.45 per maintenance hour
Estimated usage by:
Assembly Department
4,800
Fabricating Department
6,800
Packaging Department
10,600
Total maintenance hours
22,200
Actual usage by:
Assembly Department
3,550
Fabricating Department
6,900
Packaging Department
9,800
Total maintenance hours
20,250
Required:
Kequired:
1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent.
X 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 5,000 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 Departmenttharge
Total amount charged
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