Question: 1. 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

1. 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		407,000	DLH		87,000	DLH
Machine hours		807,000	MH		807,000	MH
Overhead costs	$	569,800		$	407,000

Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.

2. Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs and activities are shown below.

	Assembly			Finishing
Direct labor hours		180,000	DLH		148,000	DLH
Machine hours		380,000	MH		91,200	MH
Overhead costs	$	380,000		$	562,400

Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 3.30 machine hours in the Assembly Department, and 4.50 direct labor hours and 0.4 machine hours in the Finishing Department?

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