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Required information Exercise 4-2 Compute Activity Rates [LO4-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of
Required information Exercise 4-2 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 $ 20,400 $ 2,000 $ 20,400 $18,400 $29,600 $ 79,200 $58,000 Expected Activity 10,000 direct labor-hours 8,000 machine-hours 600 setups 400 orders 800 tests 3,600 packages 10,000 direct labor-hours Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate per DLH Labor-related Machine-related per MH Machine setups per setup Production orders per order Product testing per test
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