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 | 400,000 | DLH | 80,000 | DLH | ||
| Machine hours | 800,000 | MH | 800,000 | MH | ||
| Overhead costs | $ | 600,000 | $ | 400,000 | ||
Mixing overhead costs are assigned based on machine hours and Baking based on direct labor hours. How much overhead will be assigned to a product that requires 4 hours in the mixing department and 5 hours in the baking department?
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