Aztec Industries produces bread which goes through two operations, mixing and baking, before it is...
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Accounting
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
400,000 DLH
80,000 DLH
Machine hours
800,000 MH
800,000 MH
Overhead costs
$600,000
$400,000
Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours.
Select one:
a. $1.50 per DLH.
b. $5.00 per DLH.
c. $0.75 per DLH.
d. $0.50 per DLH.
e. $2.08 per DLH.
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