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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 Production orders. Product testing Packaging General factory Estimated Overhead Cost Expected Activity 4,000 direct labor-hours 8,000 machine-hours 500 setups $ 17,200 $ 4,000 $ 18,000 $ 27,600 $ 62,900 1,200 tests 3,700 packages $ 57,600 4,000 direct labor-hours. $10,500 300 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
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