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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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