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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 | $ | 31,200 | 5,000 | direct labor-hours | |||
Machine-related | $ | 1,250 | 5,000 | machine-hours | |||
Machine setups | $ | 36,000 | 1,200 | setups | |||
Production orders | $ | 18,000 | 500 | orders | |||
Product testing | $ | 22,000 | 1,100 | tests | |||
Packaging | $ | 42,900 | 3,900 | packages | |||
General factory | $ | 56,000 | 5,000 | direct labor-hours | |||
Required: | |||
1. | Compute the activity rate for each activity cost pool.
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