Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:

Required:
1. Compute the activity rate for each activity cost pool.
2. Compute the company's predetermined overhead rate, assuming that the company uses a single plant wide predetermined overhead rate based on direct labor-hours.

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Estimated Overhead Cost Expected Activity Activity Cost Pool $52,000 $15,000 $42,000 $18,000 $48,000 $75,000 $108,800 Labor-related. . 8,000 direct labor-hours . 20,000 machine-hours Machine setups 1,000 setups 500 orders 2,000 tests 5,000 packages 8,000 direct labor-hours