[The following information applies to the questions displayed below.]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. MixingBakingDirect labor hours 400,000DLH 80,000DLHMachine hours 800,000MH 800,000MHOverhead costs$600,000 $400,000 Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.
A. $5.00 per DLH
B. $0.75 per DLH
C. $2.08 per DLH
D. $0.50 per DLH
E. $1.50 per DLH
Answer: A
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