Question: 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

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 317,600 DLH 630,000 DLH
Machine hours 302,500 MH 1,350,000 MH
Overhead costs $1,161,000 $3,843,000

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

$3.84 per MH.

$1.05 per MH.

$6.1 per MH.

$1.94 per MH.

$3.66 per MH.

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