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 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 | $ | 31,200 | 5,000 | direct labor-hours | |
| Machine-related | $ | 1,250 | 5,000 | machine-hours | |
| Machine setups | $ | 36,000 | 1,200 | setups | |
| Production orders | $ | 18,000 | 500 | orders | |
| Product testing | $ | 22,000 | 1,100 | tests | |
| Packaging | $ | 42,900 | 3,900 | packages | |
| General factory | $ | 56,000 | 5,000 | direct labor-hours | |
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott
2nd Edition
978-0-470-7694, 0470769424, 978-0470769423
