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 Coat Exped
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 Coat Exped
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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
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
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Machine setups
Production orders
Product testing
Packaging
General factory
Activity Rate
per DLH
per MH
per setup
per order
Expected Activity
4,000 direct labor-hours
8,000 machine-hours
500 setups
300 orders
per test
per package
per DLH
1,200 tests
3,700 packages
4,000 direct labor-hours](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d5cfa71-8808-4515-8e7e-1611277710bd%2F1bdc93c2-f9f2-49c3-a0d4-f7a817188d65%2Fkdkilgm_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 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
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
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Machine setups
Production orders
Product testing
Packaging
General factory
Activity Rate
per DLH
per MH
per setup
per order
Expected Activity
4,000 direct labor-hours
8,000 machine-hours
500 setups
300 orders
per test
per package
per DLH
1,200 tests
3,700 packages
4,000 direct labor-hours
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