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

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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.)

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