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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
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 Estimated Overhead Cost $ 31,200 Expected Activity 5,000 direct labor-hours 5,000 machine-hours 1,200 setups 500 orders Machine-related $ 1,250 Machine setups $ 36,000 Production orders $ 18,000 Product testing $ 22,000 Packaging $ 42,900 General factory $ 56,000 5,000 direct labor-hours 1,100 tests 3,900 packages. Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Activity Cost Pool Activity Rate Labor-related $ 10.40 per DLH Machine-related $ 0.40 per MH Machine setups $ 30.00 per setup Production orders $ 36.00 per order Product testing $ 20.00 per test Packaging $ 22.60 per package General factory $ 6979 18.60 per DLH
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