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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): $72,135 per year Variable costs (supplies): $1.45 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 Follows: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage for the year by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Yearly hours 4,900 6,800 11,200 22,900 Total Monthly Peak Hours 420 1,540 840 2,800 3,750 6,900 10,400 21,050 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. = 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. Allocated Fixed Cost Department Peak Number of Hours Assembly Fabricating Packaging

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): $72,135 per year Variable costs (supplies): $1.45 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 Follows: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage for the year by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Yearly hours 4,900 6,800 11,200 22,900 Total Monthly Peak Hours 420 1,540 840 2,800 3,750 6,900 10,400 21,050 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. = 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. Allocated Fixed Cost Department Peak Number of Hours Assembly Fabricating Packaging

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 3,800 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
Transcribed Image Text: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 3,800 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
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): $72,135 per year Variable costs (supplies): $1.45 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: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage for the year by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Required: Yearly hours 4,900 Department Assembly Fabricating Packaging Total 6,800 11,200 22,900 Monthly Peak Hours 3,750 6,900 10,400 21,050 420 $ 1,540 840 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. per maintenance hour $ 2,800 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. Peak Number of Hours Allocated Fixed Cost
Transcribed Image Text: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): $72,135 per year Variable costs (supplies): $1.45 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: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage for the year by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Required: Yearly hours 4,900 Department Assembly Fabricating Packaging Total 6,800 11,200 22,900 Monthly Peak Hours 3,750 6,900 10,400 21,050 420 $ 1,540 840 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent. per maintenance hour $ 2,800 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. Peak Number of Hours Allocated Fixed Cost
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