Exercise 4-2 (Algo) Compute Activity Rates [LO4-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Exercise 4-2 Part 1 (Algo) Activity Cost Pool Labor-related Machine-related Estimated Overhead Cost $ 17,200 $4,000 $ 18,000 $ 10,500 $ 27,600 $ 62,900 $ 57,600 Machine setups Production orders Product testing Packaging General factory Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal place Activity Rate per DLH per MH per setup per order Expected Activity 4,000 direct labor-hours 8,000 machine-hours per test per package per DLH 500 setups 300 orders 1,200 tests 3,700 packages 4,000 direct labor-hours
Exercise 4-2 (Algo) Compute Activity Rates [LO4-2] [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company the following seven activity cost pools: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Exercise 4-2 Part 1 (Algo) Activity Cost Pool Labor-related Machine-related Estimated Overhead Cost $ 17,200 $4,000 $ 18,000 $ 10,500 $ 27,600 $ 62,900 $ 57,600 Machine setups Production orders Product testing Packaging General factory Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal place Activity Rate per DLH per MH per setup per order Expected Activity 4,000 direct labor-hours 8,000 machine-hours per test per package per DLH 500 setups 300 orders 1,200 tests 3,700 packages 4,000 direct labor-hours
Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 34BEB: Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a...
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![Exercise 4-2 (Algo) Compute Activity Rates [LO4-2]
[The following information applies to the questions displayed below.]
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's act
the following seven activity cost pools:
Activity Cost Pool
Labor-related
Machine-related
Machine setups
Production orders
Product testing
Packaging
General factory
Exercise 4-2 Part 1 (Algo)
Activity Cost Pool
Labor-related
Machine-related
Estimated
Overhead Cost
$ 17,200
$ 4,000
$ 18,000
$ 10,500
$ 27,600
$ 62,900
$ 57,600
Machine setups
Production orders
Product testing
Packaging
General factory
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Expected Activity
4,000 direct labor-hours
8,000 machine-hours
Activity Rate
per DLH
per MH
per setup
per order
per test
per package
per DLH
500 setups
300 orders
1,200 tests
3,700 packages
4,000 direct labor-hours](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5db43ac1-a81b-4bbb-9e96-1a42493a14a3%2F928c5131-dd3b-4b30-b674-e3c8edb5679c%2Fnco347m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 4-2 (Algo) Compute Activity Rates [LO4-2]
[The following information applies to the questions displayed below.]
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's act
the following seven activity cost pools:
Activity Cost Pool
Labor-related
Machine-related
Machine setups
Production orders
Product testing
Packaging
General factory
Exercise 4-2 Part 1 (Algo)
Activity Cost Pool
Labor-related
Machine-related
Estimated
Overhead Cost
$ 17,200
$ 4,000
$ 18,000
$ 10,500
$ 27,600
$ 62,900
$ 57,600
Machine setups
Production orders
Product testing
Packaging
General factory
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Expected Activity
4,000 direct labor-hours
8,000 machine-hours
Activity Rate
per DLH
per MH
per setup
per order
per test
per package
per DLH
500 setups
300 orders
1,200 tests
3,700 packages
4,000 direct labor-hours
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