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): $64,900 per year
Variable costs (supplies): $1.35 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 | 4,500 | 390 |
Fabricating Department | 6,700 | 1,300 |
Packaging Department | 10,800 | 910 |
Total maintenance hours | 22,000 | 2,600 |
Actual usage for the year by:
Assembly Department | 3,960 |
Fabricating Department | 6,800 |
Packaging Department | 10,000 |
Total maintenance hours | 20,760 |
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.
3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc.,...
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): $66,465 per year Variable costs (supplies): $1.35 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...
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:...
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...
Problem 11B-5 Service Department Charges [LO11-6] Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries...
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 325,600 * $ 417,280 Fixed costs for...
Tasman Products, Ltd., of Australla has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Budget $325,500 $417,150 $210,000 Actual Variable costs for lubricants Fixed costs for salaries and...
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other Budget $ 294,000* $210,000...
Problem 11B-5 Service Department Charges (LO11-6) Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Departmer and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost ar other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries...
Tasman Products, Ltd., of Australia has a Maintenance Department
that services the equipment in the company’s Forming Department and
Assembly Department. The cost of this servicing is charged to the
operating departments on the basis of machine-hours. Cost and other
data relating to the Maintenance Department and to the other two
departments for the most recent year are presented below.
Data for the Maintenance Department follow:
1. How much Maintenance Department cost should be charged to the
Forming Department and...
Problem 11B-5 Service Department Charges (L011-6) Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries...