Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [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
Required information [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 $ 25,200 Expected Activity 2,000 direct labor-hours 5,000 machine-hours 500 setups Activity Cost Pool Labor-related Machine-related $ 5,000 Machine setups $ 18,000 Production orders $ 29,400 Product testing $ 23,000 700 orders 1,000 tests Packaging $ 84,000 3,500 packages General factory $ 60,000 2,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Labor-related per DLH Machine-related per MH Machine setups per setup Production orders per order Product testing per test Packaging General factory per package per DLH Required information [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 $ 25,200 Expected Activity 2,000 direct labor-hours 5,000 machine-hours 500 setups Activity Cost Pool Labor-related Machine-related $ 5,000 Machine setups $ 18,000 Production orders $ 29,400 700 orders Product testing $ 23,000 1,000 tests Packaging $ 84,000 3,500 packages General factory $ 60,000 2,000 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started