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1. Compute the activity rate for each activity cost pool 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide
1. Compute the activity rate for each activity cost pool
2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.)
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 28,000 $ 2,500 $ 34,300 $ 13,800 $ 12,000 $ 57,000 $ 60,000 Expected Activity 5,000 direct labor-hours 5,000 machine-hours 700 setups 300 orders 600 tests 3,800 packages 5,000 direct labor-hoursStep by Step Solution
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