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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: Labor-related Estimated Overhead Cost $ 28,000 Expected Activity 5,000 direct labor-hours 5,000 machine-hours 700 setups Activity Cost Pool Machine-related $ 2,500 Machine setups $ 34,300 Production orders $ 13,800 Product testing $ 12,000 Packaging $ 57,000 3,800 packages General factory $ 60,000 5,000 direct labor-hours 300 orders 600 tests
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