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

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 $ 24,400 4,000 direct labor-hours
Machine-related $ 5,000 5,000 machine-hours
Machine setups $ 13,200 400 setups
Production orders $ 24,500 500 orders
Product testing $ 34,100 1,100 tests
Packaging $ 46,800 3,900 packages
General factory $ 49,600 4,000 direct labor-hours

Required:

1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

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Answer #1

Activity Rate = Estiamted Cost / Estimated Activity

Activity Activity Rate Labor related Machine Related Machine setups Prodcution Orders Prodcution Testing Packaging General Fa

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