Question
Exercise 3-2 Compute Activity Rates [LO3-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The
Exercise 3-2 Compute Activity Rates [LO3-2]
[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 | Estimated Overhead Cost | Expected 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 | |||
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Exercise 3-2 Part 1
Required: | |
1. | Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) |
Activity pool Activity rate
labor related_______per dlh
Machine related ______per mh
machine setups _______per setup
production orders________per order
procuct testing____per test
packaging_____per package
general factory______per dlh
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.) |
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