Explain the importance of elasticity
2 answers:
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Given the table showing <span>next year's expected costs
and activities below:
![\begin{tabular} {|C||C|C|} & Mixing & Baking\\[1ex] Direct labor hours&411,000 DLH&91,000 DLH\\ Maching hours&811,000 MH&811,000 MH\\[1ex] Overhead costs&\$534,300&\$411,000 \end{tabular}](https://tex.z-dn.net/?f=%5Cbegin%7Btabular%7D%0A%7B%7CC%7C%7CC%7CC%7C%7D%0A%20%26%20Mixing%20%26%20Baking%5C%5C%5B1ex%5D%0ADirect%20labor%20hours%26411%2C000%20DLH%2691%2C000%20DLH%5C%5C%0AMaching%20hours%26811%2C000%20MH%26811%2C000%20MH%5C%5C%5B1ex%5D%0AOverhead%20costs%26%5C%24534%2C300%26%5C%24411%2C000%0A%5Cend%7Btabular%7D)
Pard A:
</span><span>Aztec's departmental overhead rate for the mixing department based on direct labor hours is given by the mixing department's overhead cost divided by the mixing department's direct labor hours.
Thus, </span><span>departmental overhead rate for the mixing department based on direct labor hours is given by:
Part B:
</span>Aztec's departmental overhead rate for the baking department based on direct labor hours <span>is given by the baking department's overhead cost divided by the baking department's direct labor hours.
</span><span>Thus, <span>departmental overhead rate for the baking department based on direct labor hours is given by:
Part 3:
</span></span>Aztec's departmental overhead rate for the baking department based on machine hours <span>is given by the baking department's overhead cost divided by the baking department's machine hours.
</span><span>Thus, <span>departmental overhead rate for the baking department based on machine hours is given by:
</span></span>
Pard A:
</span><span>Aztec's departmental overhead rate for the mixing department based on direct labor hours is given by the mixing department's overhead cost divided by the mixing department's direct labor hours.
Thus, </span><span>departmental overhead rate for the mixing department based on direct labor hours is given by:
Part B:
</span>Aztec's departmental overhead rate for the baking department based on direct labor hours <span>is given by the baking department's overhead cost divided by the baking department's direct labor hours.
</span><span>Thus, <span>departmental overhead rate for the baking department based on direct labor hours is given by:
Part 3:
</span></span>Aztec's departmental overhead rate for the baking department based on machine hours <span>is given by the baking department's overhead cost divided by the baking department's machine hours.
</span><span>Thus, <span>departmental overhead rate for the baking department based on machine hours is given by: