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 $ 25,200 2,000 direct labor-hours Machine-related $ 5,000 5,000 machine-hours Machine setups $ 18,000 500 setups Production orders $ 29,400 700 orders Product testing $ 23,000 1,000 tests Packaging $ 84,000 3,500 packages General factory $ 60,000 2,000 direct labor-hours Exercise 3-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Activity Cost Pool | Activity Rate |
Labor-related | _______Per DLH |
Machine-related | _______per MH |
Machine setups | ________per setup |
production orders | ________per order |
product testing | ________per test |
packaging | ________per package |
general factory | ________per DLH |
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