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Required information Exercise 4-2 (Algo) Compute Activity Rates [LO4-2] [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 Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 28,000 $ 5,000 $ 45,000 $ 30,000 $ 27,200 $ 64,600 $ 51,200 Expected Activity 2,000 direct labor-hours 10,000 machine-hours 1,000 setups 600 orders 800 tests 3,800 packages 2,000 direct labor-hours

Required Information Exercise 4-2 (Algo) Compute Activity Rates [LO4-2] [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: Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 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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