Required information [The following information applies to the questions displayed below.] Aztec Industries produces bread which...
Required information
[The following information applies to the questions
displayed below.]
Aztec Industries produces bread which goes through two operations,
mixing and baking, before it is ready to be packaged. Next year's
expected costs and activities are shown below.
| Mixing | Baking | ||||||
| Direct labor hours | 417,000 | DLH | 97,000 | DLH | |||
| Machine hours | 817,000 | MH | 817,000 | MH | |||
| Overhead costs | $ | 750,600 | $ | 417,000 | |||
Compute Aztec's departmental overhead rate for the mixing department based on machine hours.
-
$0.92 per MH.
-
$4.30 per MH.
-
$1.80 per MH.
-
$2.27 per MH.
Homework Answers
Departmental overhead rate = Overhead costs / Machine hours
= 750,600 / 817000
= 0.92
The correct option is $0.92 per MH.
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Required information
[The following information applies to the questions
displayed below.]
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