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.
| Mixing | Baking | |
| Direct Labor Hours | 340,000 DLH | 96,000 DLH |
| Machine Hours | 1,317,500 MH | 1,317,500 MH |
| Overhead Costs | $1,054,000 | $633,600 |
Compute Aztec’s departmental overhead rate for the mixing department based on direct labor hours.
| $3.10 per DLH. | |
| $6.60 per DLH. | |
| $0.80 per DLH. | |
| $0.48 per DLH. | |
| $2.08 per DLH. |