[The following information applies to the questions displayed below. Aztec Indus

Question

[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 411,000 DLH 91,000 DLH hours Machine hours 811, 000MH 811,000 MH Overhead costs 534,300 411,000 Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours Multiple Choice $1.30 per DLH $4 52 per DLH

Explanation / Answer

Departmental overhead rate for the mixing department based on direct labor hours = $ 534,300 / 411,000 = $ 1.30 per DLH

Departmental overhead rate for the mixing department based on machine hours = $ 534,300 / 811,000 = $ 0.66 per MH

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