Tasty Bakery produces donuts which go through two operations, mixing and baking, before they are ready to
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Tasty Bakery produces donuts which go through two operations, mixing and baking, before they are ready to be packaged. Next year's expected costs and activities are shown below.
| Mixing | Baking | ||||
| Direct labor hours | 300,000 | DLH | 70,000 | DLH | |
| Machine hours | 1,000,000 | MH | 800,000 | MH | |
| Overhead costs | $500,000 | $400,000 | |||
Compute Tasty's departmental overhead rate for the mixing department based on machine hours.
$2.00 per MH. | ||
$3.33 per MH. | ||
$1.50 per MH. | ||
$0.50 per MH. | ||
$0.60 per MH. |
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