Please show all work done, including calculations, to receive full points.

Exercise 3-2 Compute Activity Rates [LO2]

[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:

Activity Cost Pool		Estimated Overhead Cost				Expected Activity
	Labor-related		$	50,000		8,300	direct labor-hours
	Machine-related		$	14,900		21,025	machine-hours
	Machine setups		$	42,000		500	setups
	Production orders		$	19,000		400	orders
	Product testing		$	49,000		2,100	tests
	Packaging		$	68,125		5,200	packages
	General factory		$	108,125		8,300	direct labor-hours

rev: 03_04_2014_QC_45868

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2.

Exercise 3-2 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	$	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

rev: 03_04_2014_QC_45868

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3.

Exercise 3-2 Part 2

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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