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Required information Exercise 4-2 Compute Activity Rates (L04-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer
Required information Exercise 4-2 Compute Activity Rates (L04-2] [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 $ 52,000 $ 15,000 42,000 18,000 48,000 $ 75,000 $ 108, 800 Expected Activity 8,000 direct labor-hours 20,000 machine-hours 1,000 setups 500 orders 2,000 tests 5,000 packages 8,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Activity Rate per DLH per MH per setup per order per test per package per DLH 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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