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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 $ 16,800 2,000 direct labor-hours
Machine-related $ 16,000 8,000 machine-hours
Machine setups $ 30,400 800 setups
Production orders $ 6,600 200 orders
Product testing $ 12,000 500 tests
Packaging $ 51,000 3,400 packages
General factory $ 55,600 2,000 direct labor-hours

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.)

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