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:

 

Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $ 22,000 1,000 direct labor-hours
Machine-related $ 10,000 8,000 machine-hours
Machine setups $ 36,000 800 setups
Production orders $ 29,400 600 orders
Product testing $ 27,900 900 tests
Packaging $ 68,400 3,600 packages
General factory $ 56,800 1,000 direct labor-hours

 

Required:

1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

 
 
Activity Cost Pool Activity Rate
Labor-related   per DLH
Machine-related   per MH
Machine setups   per setup
Production orders   per order
Product testing   per test
Packaging   per package
General factory   per DLH
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