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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 $ 18,400 2,000 direct labor-hours
Machine-related $ 5,000 10,000 machine-hours
Machine setups $ 46,800 1,200 setups
Production orders $ 23,000 500 orders
Product testing $ 27,200 800 tests
Packaging $ 39,600 3,600 packages
General factory $ 51,600 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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