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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 44
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): $64,900 per year
Variable costs (supplies): $1.35 per maintenance hour
Estimated usage by:
Actual usage by:
Required:
1. Calculate a single charging rate for the Maintenance Department.
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 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
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
Estimated usage by:
Actual usage by:
Required:
1. Calculate a single charging rate for the Maintenance Department.
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 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Explanation
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Verified
1)Single Charging Rate:
Single charging...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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