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

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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	$ 31,200	5,000	direct labor-hours
Machine-related	$ 1,250	5,000	machine-hours
Machine setups	$ 36,000	1,200	setups
Production orders	$ 18,000	500	orders
Product testing	$ 22,000	1,100	tests
Packaging	$ 42,900	3,900	packages
General factory	$ 56,000	5,000	direct labor-hours

Exercise 4-2 Part 1 (Algo)

Required:

1. Compute the activity rate for each activity cost pool.

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.)