Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.
Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below.
A) $1.50 per DLH
B) $5.00 per DLH
C) $0.75 per DLH
D) $0.50 per DLH
E) $2.08 per DLH
B) $5.00 per DLH
Explanation: $400,000/80,000 DLH = $5.00 per DLH
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