Compute Tasty's departmental overhead rate for the mixing department based on machine hours.
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.
A) $1.50 per MH.
B) $3.33 per MH.
C) $0.60 per MH.
D) $0.50 per MH.
E) $2.00 per MH.
D) $0.50 per MH.
Explanation: $500,000/1,000,000 MH = $0.50 per MH
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