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Required information 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
Required information 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: Estimated Overhead Cost Expected Activity 4,000 direct labor-hours 9,000 machine-hours 500 setups Activity Cost Pool Labor-related $ 25,600 Machine-related $ 9,000 Machine setups $ 23,000 Production orders $ 26,400 Product testing $ 39,600 1,200 tests Packaging $ 57,800 3,400 packages General factory $ 52,800 4,000 direct labor-hours 600 orders 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 Labor-related: per DLH Machine-related per MH Machine setups per setup Production orders per order Product testing Packaging General factory per test per package per DLH ! Required information 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 Machine-related Machine setups Product testing Estimated Overhead Cost $ 25,600 $ 9,000 $ 23,000 Expected Activity 4,000 direct labor-hours 9,000 machine-hours 500 setups 600 orders Production orders $ 26,400 $ 39,600 1,200 tests $ 57,800 3,400 packages $ 52,800 4,000 direct labor-hours: Packaging General factory Exercise 4-2 Part 2 (Algo) 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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