Question
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
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 | 416,000 | DLH | 96,000 | DLH |
| Machine hours | 816,000 | MH | 816,000 | MH |
| Overhead costs | $ 665,600 | $ 416,000 | ||
Compute Aztec's departmental overhead rate for the Baking department based on machine hours.
Multiple Choice
$1.60 per MH
$4.33 per MH
$0.82 per MH
$0.51 per MH
$2.11 per MH
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Management Accounting
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
6th Canadian edition
013257084X, 1846589207, 978-0132570848
