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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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