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4 years ago

Calculating and using Dual Charging Rates

Business

1 answer:

11Alexandr11 [23.1K]4 years ago

6 0

Answer:

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.

variable rate = $1.30 per maintenance hour

Department Peak Number Allocated

of hours Fixed cost

Assembly (210/2,100) x $65,400 $6,540

Fabrication (1,050/2,100) x $65,400 $32,700

Packaging (840/2,100) x $65,400 $26,160

Total 2,100/2,100 $65,400

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.

Department Fixed costs Variable cost Total

Assembly $6,540 3,500 x $1.30 = $4,550 $11,090

Fabricating $32,700 7,000 x $1.30 = $9,100 $41,800

Packaging $26,160 10,000 x $1.30 = $13,000 $39,160

Total $65,400 $26,650 $92,050

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?

Department Fixed costs Variable cost Total

Assembly $6,540 3,550 x $1.30 = $4,615 $11,155

Fabricating $32,700 7,000 x $1.30 = $9,100 $41,800

Packaging $26,160 10,000 x $1.30 = $13,000 $39,160

Total $65,400 $26,715 $92,115

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Answer:

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Bill wants to give Maria a $630,000 gift in 3 years. If money is worth 6% compounded semiannually, what is Maria's gift worth to

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