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 $ 21,200 Expected Activity 5,000 direct labor-hours 8,000 machine-hours 1,000 setups 200 orders. $ 2,000 $ 48,000 $ 9,800 $ 22,800 $ 64,600 600 tests 3,800 packages $ 56,000 5,000 direct labor-hours Exercise 4-2 Part 2 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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