A.

B.

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 $ 19,600 10,000 direct labor-hours Machine-related $ 7,000 7,000 machine-hours Machine setups $ 23,400 600 setups Production orders $ 16,500 500 orders Product testing $ 22,400 800 tests Packaging $ 62,900 3,700 packages General factory $ 60,000 10,000 direct labor-hours Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per DLH per MH 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 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: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 19,600 $ 7,000 $ 23,400 $ 16,500 $ 22,400 $ 62,900 $60,000 Expected Activity 10,000 direct labor-hours 7,000 machine-hours 600 setups 500 orders 800 tests 3,700 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 predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH