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		412,000	DLH			92,000	DLH
Machine hours		812,000	MH			812,000	MH
Overhead costs	$	515,000			$	412,000

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

Multiple Choice

• $1.25 per DLH

• $1.84 per DLH

• $4.48 per DLH

• $0.51 per DLH

• $0.63 per DLH