FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has
the following seven activity cost pools:
Estimated
Overhead Cost
$ 26,800
Expected Activity
5,000 direct labor-hours
9,000 machine-hours.
1,100 setups
Activity Cost Pool
Labor-related
Machine-related
$ 4,500
Machine setups
$ 41,800
Production orders
$ 17,000
Product testing
$ 15,500
Packaging
$ 51,000
General factory
$ 52,400
5,000 direct labor-hours
500 orders
500 tests
3,400 packages
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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Transcribed Image Text:Required information [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: Estimated Overhead Cost $ 26,800 Expected Activity 5,000 direct labor-hours 9,000 machine-hours. 1,100 setups Activity Cost Pool Labor-related Machine-related $ 4,500 Machine setups $ 41,800 Production orders $ 17,000 Product testing $ 15,500 Packaging $ 51,000 General factory $ 52,400 5,000 direct labor-hours 500 orders 500 tests 3,400 packages 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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