aztec industries produces bread which goes through two operations, mixing and baking, before it is ready to…

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.\ndirect labor hours: mixing 408,000 dlh, baking 88,000 dlh\nmachine hours: mixing 808,000 mh, baking 808,000 mh\noverhead costs: mixing $510,000, baking $408,000\ncompute aztecs departmental overhead rate for the baking department based on direct labor hours.\nmultiple choice\n$4.64 per dlh\n$1.25 per dlh\n$0.63 per dlh\n$0.50 per dlh

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.\ndirect labor hours: mixing 408,000 dlh, baking 88,000 dlh\nmachine hours: mixing 808,000 mh, baking 808,000 mh\noverhead costs: mixing $510,000, baking $408,000\ncompute aztecs departmental overhead rate for the baking department based on direct labor hours.\nmultiple choice\n$4.64 per dlh\n$1.25 per dlh\n$0.63 per dlh\n$0.50 per dlh

Answer

Explanation:

Step1: Identify relevant data

Overhead costs for Baking = $408,000, Direct - labor hours for Baking = 88,000 DLH

Step2: Calculate overhead rate

Overhead rate = $\frac{Overhead\ costs}{Direct\ labor\ hours}$ = $\frac{408000}{88000}\approx4.64$

Answer:

$4.64 per DLH