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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 | $ 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 activity rate for each activity cost pool.
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