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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
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 Labor-related Machine-related $ 2,500 Machine setups $ 34,300 Estimated Overhead Cost $ 28,000 Expected Activity 5,000 direct labor-hours 5,000 machine-hours 700 setups Production orders $ 13,800 300 orders Product testing $ 12,000 600 tests. Packaging. $ 57,000 3,800 packages General factory $ 60,000 5,000 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.) Predetermined overhead rate per DLH
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