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A.
The following information applies to the questions displayed below.) Rustafson Corporation is a diversified manufacturer of c
Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal plac

B.
Required information Exercise 4-2 Compute Activity Rates (L04-2] [The following information applies to the questions displaye
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Answer #1

Req. 1

Activity Cost Pool Activity Rate
Labor Related ( $19,600÷ 10,000) $ 1.96 Per DLH
Machine Related (7000÷7000) $1 Per MH
Machine Setup ($23,400÷ 600) $39 Per Setup
Production Order( $16,500÷500) $33 Per order
Product Testing( $ 22,400 ÷ 800) $28 Per test
Packaging ( $ 62,900 ÷3700) $17 Per Package
General Factory( $ 60,000 ÷ 10,000) $6 Per DLH

Req.2

Predetermined Overhead Rate Per DLH

Explanation:

1) Estimated Overhead ÷ Estimated Direct Labour Hour

= $ 211,800 ÷ 10,000 DLH

= $ 21.18 per DLH

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