Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing...

70.2K

Verified Solution

Question

Accounting

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 $ 20,400 10,000 direct labor-hours

Machine-related $ 2,000 8,000 machine-hours

Machine setups $ 20,400 600 setups

Production orders $ 18,400 400 orders

Product testing $ 29,600 800 tests

Packaging $ 79,200 3,600 packages

General factory $ 58,000 10,000 direct labor-hours

Activity Cost Pool	Estimated Overhead Cost	Expected Activity
Labor-related	$ 20,400	10,000	direct labor-hours
Machine-related	$ 2,000	8,000	machine-hours
Machine setups	$ 20,400	600	setups
Production orders	$ 18,400	400	orders
Product testing	$ 29,600	800	tests
Packaging	$ 79,200	3,600	packages
General factory	$ 58,000	10,000	direct labor-hours

Exercise 4-2 Part 2 (Algo)

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.)

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member