Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 |
1. Compute the activity rate for each activity cost pool.
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started