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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 | $ 20,400 | 10,000 | direct labor-hours |
Machine-related | $ 2,000 | 8,000 | machine-hours |
Machine setups | $ 20,400 | 600 | setups |
Production orders | $ 18,400 | 400 | orders |
Product testing | $ 29,600 | 800 | tests |
Packaging | $ 79,200 | 3,600 | packages |
General factory | $ 58,000 | 10,000 | direct labor-hours |
Exercise 4-2 Part 1 (Algo)
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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