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Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. Rustafson Corporation is a
Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours.
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 $ 22,000 $ 10,000 $36,000 $ 29,400 $ 27,900 $ 68,400 $ 56,800 Expected Activity 1,000 direct labor-hours 8,000 machine-hours 800 setups 600 orders 900 tests 3,600 packages 1,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Labor-related Activity Rate per DLH Machine-related per MH Machine setups Production orders Product testing Packaging General factory per setup per order per test per package per DLHStep by Step Solution
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