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Exercise 4-2 (Algo) Compute Activity Rates [LO4-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer
Exercise 4-2 (Algo) Compute Activity Rates [LO4-2] [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 Labor-related Estimated Overhead Cost $ 25,200 Machine-related $ 5,000 Machine setups $ 18,000 Production orders $ 29,400 Product testing $ 23,000 $ 84,000 $ 60,000 Packaging General factory Expected Activity 2,000 direct labor-hours 5,000 machine-hours 500 setups 700 orders 1,000 tests 3,500 packages 2,000 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.) Activity Cost Pool Activity Rate per DLH per MH per setup Labor-related Machine-related Machine setups Production orders per order Product testing Packaging General factory per test per package per DLH S
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