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Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 2. Compute the company's predetermined overhead rate,
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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.)
Required information [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 Product testing Packaging General factory Estimated Overhead Cost $ 17,600 $ 14,000 $ 31,500 $ 32,900 $ 24,000 $ 90,000 $ 50,000 Expected Activity 5,000 direct labor-hours 8,000 machine-hours 700 setups 709 orders 600 tests 3,600 packages 5,000 direct labor-hours Activity Cost Pool Activity Rate Labor-related per DLH per MH Machine-related Machine setups per setup Production orders per order per test Product testing Packaging General factory per package per DLH Predetermined overhead rate per DLH
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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.)
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