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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 Estimated Overhead Cost $26,800 $ 4,500 $41,800 Expected Activity 5,000 direct labor-hours 9,000 machine-hours 1,100 setups 500 orders Machine-related Machine setups Production orders $ 17,000 Product testing Packaging $ 15,500 $51,000 General factory $52,400 5,000 direct labor-hours) 500 tests 3,400 packages 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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