Question
Required information Exercise 4-2 Compute Activity Rates [LO4-2] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following
Required information Exercise 4-2 Compute Activity Rates [LO4-2]
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 | Estimated Overhead Cost | Expected Activity | |||
| Labor-related | $ | 16,800 | 2,000 | direct labor-hours | |
| Machine-related | $ | 16,000 | 8,000 | machine-hours | |
| Machine setups | $ | 30,400 | 800 | setups | |
| Production orders | $ | 6,600 | 200 | orders | |
| Product testing | $ | 12,000 | 500 | tests | |
| Packaging | $ | 51,000 | 3,400 | packages | |
| General factory | $ | 55,600 | 2,000 | direct labor-hours | |
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
17th edition
007802577X, 978-0078025778
