Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the...
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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 Expected Activity 5,000 direct labor-hours 8,000 machine-hours 700 setups Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Cost $ 17,600 $ 14,000 $ 31, 500 $ 32,900 $ 24,000 $ 90,000 $ 50,000 700 orders 600 tests 3,600 packages 5,000 direct labor-hours Exercise 4-2 Part 1 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 Machine-related Machine setups Production orders Product testing Packaging per DLH per MH per setup per order per test per package General factory per DLH 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 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 Expected Activity 5,000 direct labor-hours 8,000 machine-hours 700 setups Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Cost $ 17,600 $ 14,000 $ 31, 500 $ 32,900 $ 24,000 $ 90,000 $ 50,000 700 orders 600 tests 3,600 packages 5,000 direct labor-hours Exercise 4-2 Part 1 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 Machine-related Machine setups Production orders Product testing Packaging per DLH per MH per setup per order per test per package General factory per DLH 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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Answer1 Activity cost pool Activity rate Labor related 352 Per DLH Machine related 175 Per MH Machin... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
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