Business, 24.02.2020 21:31 beanokelley

Burk Company uses activity-based costing. Two of Burk Company’s production activities are spinning and molding. Assume the company estimates manufacturing overhead costs to be $20,000 per month for spinning and $35,000 per month for molding. Burk Company allocates spinning costs based on the number of machine hours used. Molding costs are allocated based on number of batches. Suppose Burk Company estimates it will use 50,000 machine hours and have 60,000 batches. What is the predetermined overhead allocation rate for spinning?

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Burk Company uses activity-based costing. Two of Burk Company’s production activities are spinning a...

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