Question: 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

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 hours406,000DLH86,000DLHMachine hours806,000MH806,000MHOverhead costs$ 507,500$ 406,000

Compute Aztec's departmental overhead rate for the Baking department based on direct labor hours.

Select one:

a. $1.25 per DLH

b. $4.72 per DLH

c. $0.50 per DLH

d. $0.63 per DLH

e. $1.86 per DLH

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