AZTEC Industries produces bread which goes through two operation, mixing and baking, before it is packaged.
Mixing: 400,000 Direct Labor Hours, 800,000 Machine Hours, $600,000 Overhead Costs.
Baking: 80,000 Direct Labor Hours, 800,000 Machine Hours, $400,000 Overhead Costs.
Compute the departmental overhead rate for the mixing department based on Machine Hours (MH)
Choose matching definition
a. $600,000/800,000 MH = $0.75
b. $600,000/400,000 DLH = $1.50
c. $400,000/80,000 DLH = $5.00 per DLH
d. $93,000/7,750 units = $12 per