Required information Skip to question [The following information applies to the questions displayed below.] Aztec Industries produces
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[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 | 405,000 | DLH | 85,000 | DLH | ||||
Machine hours | 805,000 | MH | 805,000 | MH | ||||
Overhead costs | $ | 607,500 | $ | 405,000 | ||||
Compute Aztec's departmental overhead rate for the mixing department based on machine hours.
Multiple Choice
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$4.76 per MH.
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$0.75 per MH.
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$1.50 per MH.
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$0.50 per MH.
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$2.07 per MH.
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