Question
[The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has
[The following information applies to the questions displayed below.] 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 Estimated Overhead Cost Expected Activity 2,000 direct labor-hours 10,000 machine-hours 1,200 setups 500 orders: $ 18,400 Machine-related $ 5,000 Machine setups $ 46,800 Production orders $ 23,000 Product testing $ 27,200 Packaging $ 39,600 General factory $ 51,600 2,000 direct labor-hours 800 tests 3,600 packages. Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Labor-related Machine-related Activity Rate per DLH per MH Machine setups Production orders Product testing Packaging General factory per setup per order per test per package per DLH 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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