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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 | $ | 21,200 | 5,000 | direct labor-hours | |
Machine-related | $ | 2,000 | 8,000 | machine-hours | |
Machine setups | $ | 48,000 | 1,000 | setups | |
Production orders | $ | 9,800 | 200 | orders | |
Product testing | $ | 22,800 | 600 | tests | |
Packaging | $ | 64,600 | 3,800 | packages | |
General factory | $ | 56,000 | 5,000 | 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.)
Predetermined overhead rate_____ per DLH
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