tasty pastry produces donuts which go through two operations, mixing and baking, before they are ready to be…

tasty pastry produces donuts which go through two operations, mixing and baking, before they are ready to be packaged. next years expected costs and activities are shown below. compute tastys departmental overhead rate for the mixing department based on machine hours. multiple choice $3.33 per mh. $0.60 per mh. $0.51 per mh. $2.00 per mh. $1.50 per mh. machine hours overhead costs direct labor hours mixing 300,000 dlh 1,000,000 mh $510,000 baking 70,000 dlh 800,000 mh $400,000

tasty pastry produces donuts which go through two operations, mixing and baking, before they are ready to be packaged. next years expected costs and activities are shown below. compute tastys departmental overhead rate for the mixing department based on machine hours. multiple choice $3.33 per mh. $0.60 per mh. $0.51 per mh. $2.00 per mh. $1.50 per mh. machine hours overhead costs direct labor hours mixing 300,000 dlh 1,000,000 mh $510,000 baking 70,000 dlh 800,000 mh $400,000

Answer

Explanation:

Step1: Recall overhead - rate formula

The formula for the departmental overhead rate is $\text{Overhead rate}=\frac{\text{Total overhead costs}}{\text{Total machine - hours}}$.

Step2: Identify values for the mixing department

For the mixing department, the total overhead costs are $$510,000$ and the total machine - hours are $1,000,000$ MH.

Step3: Calculate the overhead rate

$\text{Overhead rate}=\frac{510000}{1000000}= 0.51$ per MH.

Answer:

$0.51$ per MH