Required information

Skip to question

[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

• $4.76 per MH.

• $0.75 per MH.

• $1.50 per MH.

• $0.50 per MH.

• $2.07 per MH.