Question
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 $ 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 Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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