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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 Labor-related
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 Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 20,400 $ 2,000 $ 20,400 $ 18,400 Predetermined overhead rate $ 29,600 $ 79,200 $ 58,000 Expected Activity 10,000 direct labor-hours 8,000 machine-hours per DLH 600 setups 400 orders 800 tests Exercise 4-2 Part 2 (Algo) 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.) 3,600 packages 10,000 direct labor-hours
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