36 .

During its most recent fiscal year, Raphael Enterprises sold 390,000 electric screwdrivers at a price of $20.70 each. Fixed costs amounted to $1,521,000 and pretax income was $1,911,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$8,073,000.

$3,432,000.

$4,641,000.

$6,162,000.

$3,120,000.

26.

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	400,000 DLH	80,000 DLH
Machine hours	800,000 MH	800,000 MH
Overhead costs	$600,000	$400,000

26.

value: 2.50 points

Required information

Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.

$1.50 per DLH

$5.00 per DLH

$0.75 per DLH

$0.50 per DLH

$2.08 per DLH