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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.

Mixing Baking
Direct labor hours 400,000 DLH 80,000 DLH
Machine hours 800,000 MH 800,000 MH
Overhead costs $ 600,000 $ 400,000

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

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