Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below] Tasty Bakery produces donuts which go through two operations, mixing and baking, before they are ready to be packaged. Next year's expected costs and activities are shown below. Baking 70,000 DLH 800,000 MH Mixing Direct labor hours Machine hours Overhead costs 300,000 DLH 1,000,000 MH $500,000 $400,000 Compute Tasty's departmental overhead rate for the mixing department based on machine hours Multiple Choice $1.50 per MH $3.33 per MH $0.60 per MH

Explanation / Answer

Tasty departmental overhead rate for mixing department based on Machine Hours:

= $500,000/ 1,000,000 MH = $0.50 per MH

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