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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 | $ 17,200 | 4,000 | direct labor-hours |
Machine-related | $ 4,000 | 8,000 | machine-hours |
Machine setups | $ 18,000 | 500 | setups |
Production orders | $ 10,500 | 300 | orders |
Product testing | $ 27,600 | 1,200 | tests |
Packaging | $ 62,900 | 3,700 | packages |
General factory | $ 57,600 | 4,000 | direct labor-hours |
Exercise 4-2 Part 1 (Algo)
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Labor Related __________ per DLH
Machine related__________per MH
Machine setups _______per setup
Production Oeders______per order
Product testing________per test
Packaging___________per package
General faculty ________ per DLH
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