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Calco 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
Calco 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 Calco's departmental overhead rate for the Mixing department based on direct labor hours.
O $1.80 per DL.
0 $4.30 per DLH.
O $0.92 per DLH.
O $0.51 per DLH.
O $2.27 per DLH.
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