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 Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 19,600 $ 7,000 Expected Activity 10,000 direct labor-hours 7,000 machine-hours 600 setups 500 orders 800 tests $ 23,400 $ 16,500 $ 22,400 $ 62,900 $ 60,000 10,000 direct labor-hours 3,700 packages 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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 Cost
Expected Activity
10,000 direct labor-hours
7,000 machine-hours
600 setups
Activity Cost Pool
Labor-related
$ 19,600
Machine-related
$ 7,000
Machine setups
$ 23,400
Production orders
$ 16,500
500 orders
Product testing
$ 22,400
Packaging
$ 62,900
800 tests
3,700 packages
General factory
$ 60,000
10,000 direct labor-hours
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
Transcribed Image Text:Required information [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: Estimated Overhead Cost Expected Activity 10,000 direct labor-hours 7,000 machine-hours 600 setups Activity Cost Pool Labor-related $ 19,600 Machine-related $ 7,000 Machine setups $ 23,400 Production orders $ 16,500 500 orders Product testing $ 22,400 Packaging $ 62,900 800 tests 3,700 packages General factory $ 60,000 10,000 direct labor-hours 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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