Question

Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Part 1 of 2 Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 25,600 $ 9,000 $ 23,000 $ 26,400 $ 39, 600 $ 57,800 $ 52,800 Expected Activity 4,000 direct labor-hours 9,000 machine-hours 500 setups 600 orders 1,200 tests 3,400 packages 4,000 direct labor-hours points eBook Hint Print Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) References Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Activity Rate per DLH per MH per setup per order per test per package per DLH

Answer 1

activities 500 Answers 1 calculate the Aclivity Rate Aclivity cot pool Estimated Expeded Activi, sale. Overhead cost SA/B] Labor related $ 25,600 4.000 $6.4 per DLH Machine related $9,000 9000 $ 1 per machine hous Machine stup $23,000 $ 46 per setup production orders $26.400 600 $44 per orders product testing $39,600 1200 $ 33 per test packaging 1 $ 57,800 3,400 $ 17 per package General factory $52,800 4,000 $13.2 per DLH Total Overheads $234,800 2) Cabalation of pre determined Overhead yote :- pre determined overhead rate - Tolaloverheads/Direct Labor - $234,200/4000 • $58.55 per OLH. 1:. pre determined overhead rate = $58.55 per Direct Labor Hour.