Exercise 4-2 Compute Activity Rates (L04-2) [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 Machine-related Machine setups Production orders Hroduct testing Packaging General factory Estimated Overhead Cost $ 28,000 $ 5,000 $ 45,000 $ 30,000 $ 27,200 $ 64,600 $ 51,200 Expected Activity 2,000 direct labor-hours 10,000 machine-hours 1,000 setups 600 orders 800 tests 3,800 packages 2,000 direct labor-hours Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Activity Rate per DLH per MH per setup per order per test per package per DLH 2 2 of 2 Required information Exercise 4-2 Compute Activity Rates (L04-2) [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: 3 poed Estimated Overhead Cost 520,000 $5,000 $ 45,000 $30,000 $ 27.200 $ 64,600 $51,200 Activity Cont. Vool Labor-related Kachine-related Machine setup Production orders Product testing Packaging General factory Expected Motivity 2,000 direct laborehours 10,000 sachine-hours 1.000 stupa 600 orders 300 test 3,000 package 2,000 direct labor-hours DO Hin Exercise 4-2 Part 2 References 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.) Pradeemine ochoodate Iper DLH Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Cost $ 311,500 $ 8,840 $ 71,280 $ 63,700 $ 148,000 Expected Activity 44,500 DLHS 221 orders 99 part types 1,820 boards 14,800 MHS Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product A Product B Product C Product D 6,800 27,300 4,600 5,800 51 29 49 92 34 33 15 500 770 550 0 2,100 6,300 2,400 4,000 17 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Parts management per part type Board etching General factory per board per MH Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product Product Product Product D 6,800 27,300 4,600 5,800 51 29 49 92 34 17 33 15 500 770 550 0 2,100 6,300 2,400 4,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Product B Product C Product A Product D Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Total
