Question: Aztec Industries produces bread which goes through two operations, Mixing and Baking, before it is ready to be packaged. Next years expected costs and activities

Aztec Industries produces bread which goes through two operations, Mixing and Baking, before it is ready to be packaged. Next years expected costs and activities are shown below.

MixingBakingDirect labor hours400,000DLH80,000DLHMachine hours800,000MH800,000MHOverhead costs$ 600,000$ 400,000

Compute Aztecs departmental overhead rate for the Mixing department based on machine hours.

Select one:

a. $1.50 per MH.

b. $0.50 per MH.

c. $0.75 per MH.

d. $5.00 per MH.

e. $2.08 per MH.

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