Question

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.

Answer 1

To assign the costs of the maintenance department to user departments based on actual usage, use the two rates and calculate the total charge. For example, if Department A uses 80% of the maintenance services and Department B uses 20%, you can charge 80% of the total maintenance costs to Department A and 20% to Department B.

Step-by-step explanation:

To assign the costs of the maintenance department to the user departments based on actual usage, you can use the two rates. Let's say there are two user departments: Department A and Department B. If Department A uses 80% of the maintenance services, and Department B uses 20%, you can assign 80% of the total maintenance costs to Department A and 20% to Department B.

For example, if the total maintenance costs for the year are $100,000, Department A would be charged $80,000 and Department B would be charged $20,000.

To calculate the total amount charged for maintenance for the year, simply add up the amounts charged to each user department.