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.

A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:

		Budgeted Activity
Activity Cost Pool	Budgeted Cost	Product A	Product B	Product C
Activity 1	$70,000	6,000	9,000	20,000
Activity 2	$45,000	7,000	15,000	8,000
Activity 3	$82,000	2,500	1,000	1,625

Which of the following statements is true regarding this company's activity rates?

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 machine hours.