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.\n\n| | mixing | baking |\n|--|--|--|\n| direct labor hours | 402,000 dlh | 82,000 dlh |\n| machine hours | 802,000 mh | 802,000 mh |\n| overhead costs | $ 562,800 | $ 402,000 |\n\ncompute aztecs departmental overhead rate for the mixing department based on machine hours.\n\nmultiple choice\n$4.90 per mh.\n$0.70 per mh.\n$1.40 per mh.\n$0.50 per mh.

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.\n\n| | mixing | baking |\n|--|--|--|\n| direct labor hours | 402,000 dlh | 82,000 dlh |\n| machine hours | 802,000 mh | 802,000 mh |\n| overhead costs | $ 562,800 | $ 402,000 |\n\ncompute aztecs departmental overhead rate for the mixing department based on machine hours.\n\nmultiple choice\n$4.90 per mh.\n$0.70 per mh.\n$1.40 per mh.\n$0.50 per mh.

Answer

Explanation:

Step1: Identify relevant data

Overhead costs for Mixing = $562,800, Machine - hours for Mixing = 802,000 MH

Step2: Calculate overhead rate

Overhead rate = $\frac{\text{Overhead costs}}{\text{Machine - hours}}=\frac{562800}{802000}$ $= 0.7$ per MH

Answer:

$0.70$ per MH.