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1a-g: Compute the activity rate for each activity cost pool 2. Compute the companies predetermined overhead rate, assuming that the company uses a single plantwide
1a-g: Compute the activity rate for each activity cost pool
2. Compute the companies 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)
Required information [The following information applies to the questions displayed below.] 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 $ 21,200 $ 2,000 $ 48,000 $ 9,800 $ 22,800 $ 64,600 $ 56,000 Expected Activity 5,000 direct labor-hours 8,000 machine-hours 1,000 setups 200 orders 600 tests 3,800 packages 5,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Labor-related per DLH per MH Machine-related Machine setups Production orders per setup per order per test Product testing Packaging General factory per package per DLHStep by Step Solution
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