Required information

SB Aztec Industries produces bread which goes...

[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 hours		402,000	DLH			82,000	DLH
Machine hours		802,000	MH			802,000	MH
Overhead costs	$	562,800			$	402,000

MC Qu. 114 Compute Aztec's departmental overhead...

Compute Aztec's departmental overhead rate for the mixing department based on machine hours.

Multiple Choice

• $4.90 per MH.

• $0.70 per MH.

• $1.40 per MH.

• $0.50 per MH.

• $1.99 per MH.