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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:

Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $ 28,000 5,000 direct labor-hours
Machine-related $ 2,500 5,000 machine-hours
Machine setups $ 34,300 700 setups
Production orders $ 13,800 300 orders
Product testing $ 12,000 600 tests
Packaging $ 57,000 3,800 packages
General factory $ 60,000 5,000 direct labor-hours

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 $ per package
General factory $ per DLH

2.

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:

Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $ 28,000 5,000 direct labor-hours
Machine-related $ 2,500 5,000 machine-hours
Machine setups $ 34,300 700 setups
Production orders $ 13,800 300 orders
Product testing $ 12,000 600 tests
Packaging $ 57,000 3,800 packages
General factory $ 60,000 5,000 direct labor-hours

Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours.

3.

Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool Activity Rates
Labor-related $ 7.00 per direct labor-hour
Machine-related $ 7.00 per machine-hour
Machine setups $ 30.00 per setup
Production orders $ 200.00 per order
Shipments $ 140.00 per shipment
General factory $ 7.00 per direct labor-hour

Cost and activity data have been supplied for the following products:

J78 B52
Direct materials cost per unit $ 5.50 $ 32.00
Direct labor cost per unit $ 4.75 $ 9.00
Number of units produced per year 4,000 100

Total Expected Activity
J78 B52
Direct labor-hours 1,200 30
Machine-hours 2,200 50
Machine setups 6 1
Production orders 5 1
Shipments 7 1

Required:

Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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