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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
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 Estimated Overhead Cost Expected Activity 10,000 direct labor-hours 10,000 machine-hours 500 setups 500 orders $ 16,400 $ 5,000 $ 20,500 Production orders $ 19,000 $ 21,700 $ 36,000 $ 53,600 10,000 direct labor-hours Product testing Packaging General factory 700 tests 3,600 packages 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 i Product testing Packaging General factory per test per package per DLH
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