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Required information Skip to question [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's

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[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 Estimated Overhead Cost Expected Activity
Labor-related $ 22,000 1,000 direct labor-hours
Machine-related $ 10,000 8,000 machine-hours
Machine setups $ 36,000 800 setups
Production orders $ 29,400 600 orders
Product testing $ 27,900 900 tests
Packaging $ 68,400 3,600 packages
General factory $ 56,800 1,000 direct labor-hours

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.)

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