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.

Select one:

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.