Question
Rustafson Corporation is a diversified manufacturer of consumer goods. The companys activity-based costing system has the following seven activity cost pools: Activity Cost Pool labor-
Rustafson Corporation is a diversified manufacturer of consumer goods. The companys activity-based costing system has the following seven activity cost pools:
Activity Cost Pool
labor- related
Machine -related
machine setups
production orders
product testing
packaging
general factory
Estimated overhead cost
$17,600
14,000
$31,500
$32,900
$24,000
$90,000
$50,000
Expected Activity
5,000 direct labor-hours
8,000 machine-hours
700 setups
700 orders
600 tests
3,600 packages
5,000 direct labor-hours
Required: 1. Compute the activity rate for each activity cost pool. (Round your answers 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