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
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 Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 23,200 $5,000 $ 36,000 $27,000 Expected Activity 8,000 direct labor-hours 10,000 machine-hours 1,200 setups 600 orders 900 tests $ 23,400 $ 37,000 $ 54,800 8,000 direct labor-hours 3,700 packages Exercise 4-2 Part 2 (Algo) 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
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