Question

Cornerstone Exercise 7.1 (Algorithmic) 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): $68,670 per year Variable costs (supplies): $1.45 per maintenance hour Estimated usage by:   Assembly Department 4,800   Fabricating Department 6,500   Packaging Department 10,500       Total maintenance hours 21,800 Actual usage by:   Assembly Department 3,500   Fabricating Department 6,600   Packaging Department 9,700       Total maintenance hours 19,800 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. $  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 3,550 maintenance hours in the year? How much would have been charged out to the three departments? Assembly Department charge $ Fabricating Department charge     Packaging Department charge     Total amount charged $

Hide Feedback