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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 Estimated Overhead Cost Expected Activity 2,000 direct labor-hours 8,000 machine-hours 800 setups 200 orders Activity Cost Pool Labor-related $ 16,800 Machine-related $ 16,000 Machine setups $ 30,400 Production orders $ 6,600 Product testing $ 12,000 500 tests Packaging $ 51,000 3,400 packages General factory $ 55,600 2,000 direct labor-hours 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 < Prev 88 10 of 10 Next
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