Question

ebook Calculator 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): $61,040 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 4,800 450 Fabricating Department 6,200 1,800 750 Packaging Department 10,800 Total maintenance hours 21,800 3,000 Actual usage for the year by: Assembly Department 3,750 Fabricating Department 6,300 Packaging Department 10,000 Total maintenance hours 20,050 Required:

Answer 1

Page No 0 Answer 0 variable quatre Variable orabe = $1140 por maintenance hower to of Assembly = Monthly peak hours Total maintenance hows = 450 9000 z 15. %99 fabricating = 1800_ X100 3000 - 607 % og Packaging = 750 x100 3000 e 25%. Peak No. of Pencentage hours 450 Department Assembly Fabricating Packaging Total 15% | 60% Budgebed Allocated fixed cost | fixed cost 61040 $9156 $610401 $ 36624 $61040 $15260 1800 750 3000 100%. $ 61040

Page No ① @ Tatal change maintenance for the years Actual Noof variable rate variable amount Department I hours 3750 $1.4 6300 Total amount charge @+0) $9156 $14406 $36624 $45444 $15060 $ 29260 $61040 $89110 Assembly Fabricating Packaging Total hol$ $5250 $8820 $14000 $28070 10,000 $104 20050 (c 3 Totale charge of the departments Actual no. of variable variable I fixed Total Department hours 1 orate l amount amount I charge (erd) @ Assembly 3800 1 $1.4 $5320 $9156 $14446 Fabricating 6300 $8820 $36624 $45444 Packaging 10,000 $104 $14000 $15260 $29260 Total 20100 $28140 $61040 $89180