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Compute aztec departmental overhead rate

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Question 1: 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. Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.

                         Mixing                      Baking

DL hours              414,000                 94,000

Machine hours        814,000                 814,000

OH Costs             $662,400                $414,000

Reference no: EM132610658

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