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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 Estimated
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 | $ 20,400 | 5,000 | direct labor-hours |
Machine-related | $ 2,500 | 5,000 | machine-hours |
Machine setups | $ 55,000 | 1,100 | setups |
Production orders | $ 6,800 | 200 | orders |
Product testing | $ 28,800 | 1,200 | tests |
Packaging | $ 78,000 | 3,900 | packages |
General factory | $ 59,600 | 5,000 | direct labor-hours |
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