Question
Required information Exercise 4-2 (Static) 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 (Static) 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: Estimated Overhead Cost Expected Activity 8,000 direct labor-hours 20,000 machine-hours. 1,000 setups Activity Cost Pool Labor-related $ 52,000 Machine-related $ 15,000 Machine setups $ 42,000 Production orders o $ 18,000 Product testing $ 48,000 2,000 tests es Packaging General factory $ 75,000 5,000 packages $108,800 8,000 direct labor-hours 500 orders Exercise 4-2 (Static) Part 2 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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