[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. Mixing BakingDirect labor hours300,000DLH 70,000DLHMachine hours1,000,000MH 800,000MHOverhead costs$500,000 $400,000 Compute Tasty's departmental overhead rate for the mixing department based on machine hours.
A. $0.60 per MH.
B. $2.00 per MH.
C. $3.33 per MH.
D. $0.50 per MH.
E. $1.50 per MH.
Answer: D
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