Help Save & Exit Submit 5 Required information (The folowing information applies
ID: 2514144 • Letter: H
Question
Help Save & Exit Submit 5 Required information (The folowing information applies to the questions displayed below. Aztec Industries produces bread which goes through two operations, mixing and baking, before packaged. Next year's expected costs and activities are shown below Mixing Baking Direct labor hours 414, ee0 DLH 94,000 DLH Machine hours 814,000 MH 814,0e00 MH overhead costs $662,400 $414,08e Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours. Multiple Choice $0.81 per DLH $2.12 per DLH. Mc Graw K Prev 5 of 16 I Next >Explanation / Answer
Ans 5 - $ 1.60 per DLH
Calculation -
Absorption rate of mixing department
= $662,400 ÷ 414,000 DLH
= $1.6 per DLH
Ans 6 - $694,375
Calculation -
Sales required
= (Profit + fixed cost ) ÷ Contribution margin
= ( $39400 + $71700 ) ÷ 16%
= $ 694,375
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