Required information [The following information applies to the questions displayed below.] Tasty Bakery produces donuts which...
Required information
[The following information applies to the questions
displayed below.]
Tasty Bakery produces donuts which go through two operations,
mixing and baking, before they are ready to be packaged. Next
year’s expected costs and activities are shown below.
| Mixing | Baking | ||||
| Direct labor hours | 300,000 | DLH | 70,000 | DLH | |
| Machine hours | 1,000,000 | MH | 800,000 | MH | |
| Overhead costs | $500,000 | $400,000 | |||
Compute Tasty's departmental overhead rate for the mixing department based on direct labor hours.
Multiple Choice
-
$1.50 per DLH.
-
$5.00 per DLH.
-
$0.75 per DLH.
-
$0.60 per DLH.
-
$1.67 per DLH.
Homework Answers
Correct answer----------$1.67 per DLH
Working
| (A) | Budgeted Factory Overheads | $ 500,000 |
| (B) | Budgeted Direct labor hours | 3,00,000 |
| C= (A/B) | Predetermined Overhead rate for fixed overheads | $ 1.67 |
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Required information
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Tasty Bakery produces donuts which...
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