Exercise 4-2 (Algo) Compute Activity Rates [LO4-2]

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

Exercise 4-2 Part 1 (Algo)

Required:

1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

Laber-related

Machine related

Machine setups

Production orders

Product testing

Packaging

General Factory