Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 Required information Exercise 4-2 Compute Activity Rates (L04-2) [The following information applies to the questions displayed below) Rustafson Corporation is a diversified manufacturer of

image text in transcribed
image text in transcribed
image text in transcribed
2 Required information Exercise 4-2 Compute Activity Rates (L04-2) [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: Estimated Overhead Expected Activity Cost Pool Cost Activity Labor-related $ 16,400 10,000 direct labor-hours Machine-related $ 5,000 10,000 machine-hours Machine setups $ 20,500 500 setups Production orders $19,900 5e0 orders Product testing $21,700 700 tests Packaging $36,000 3,600 packages General factory $53,600 10,000 direct labor-hours rences Exercise 4-2 Part 1 OOK Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) int rint Activity Rate per DLH per MH Fences Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory per setup per order per test per package per DLH [The following information applies to the questions displayed below.) Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based cos 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 $ 16,400 $ 5,000 $ 20,500 $ 19,000 $ 21,700 $36,000 $ 53,600 Expected Activity 10,000 direct labor-hours 10,000 machine-hours 500 setups 500 orders 700 tests 3,600 packages 10,000 direct labor-hours Exercise 4-2 Part 2 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide pre overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: By David N. Ricchiute

6th Edition

0324024029, 9780324024029

More Books

Students also viewed these Accounting questions

Question

What are pay grades and ranges?

Answered: 1 week ago

Question

Discuss the goals of financial management.

Answered: 1 week ago

Question

suggest a range of work sample exercises and design them

Answered: 1 week ago