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 416,000 DLH 96,000 DLH Machine hours 816,000 MH 816,000 MH Overhead costs $ 665,600 $ 416,000 Compute Aztec's departmental overhead rate for the Baking department based on machine hours Multiple Choice $1 60 per MH $4 33 per MH $0 82 per MH $0 51 per MH $2 11 per MH

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	416,000	DLH	96,000	DLH
Machine hours	816,000	MH	816,000	MH
Overhead costs	$ 665,600		$ 416,000

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

Multiple Choice

$1.60 per MH
$4.33 per MH
$0.82 per MH
$0.51 per MH
$2.11 per MH

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