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Exercise 4-2 Compute Activity Rates [LO4-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The
Exercise 4-2 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: Estimated Expected Activity 5.000 direct labor-hours 9,000 machine-hours Overhead Activity Cost Pool Cost 26,800 $ 4,500 41,800 17,000 $ 15,500 $51,000 52,400 Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory 1,100 setups 500 orders 500 testS 3,400 packages 5,000 direct labor-hours Exercise 4-2 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.) Predetermined overhead rate per DLH
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