Compute aztec departmental overhead rate

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Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below.

Mixing Baking
Direct Labor Hours 340,000 DLH 96,000 DLH
Machine Hours 1,317,500 MH 1,317,500 MH
Overhead Costs $1,054,000 $633,600 Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours.
$3.10 per DLH.
$6.60 per DLH.
$0.80 per DLH.
$0.48 per DLH.
$2.08 per DLH.

 

Reference no: EM13939807

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