Exercise 3-2 Compute Activity Rates [LO3-2]

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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		Estimated Overhead Cost				Expected Activity
	Labor-related		$	52,000		8,000	direct labor-hours
	Machine-related		$	15,000		20,000	machine-hours
	Machine setups		$	42,000		1,000	setups
	Production orders		$	18,000		500	orders
	Product testing		$	48,000		2,000	tests
	Packaging		$	75,000		5,000	packages
	General factory		$	108,800		8,000	direct labor-hours

1. value: 16.66 points Required information Exercise 3-2 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 Hints References eBook & Resources Hint #1 Ask your instructor a question Check my work 2. value: 16.66 points Requin Exercise 3-2 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