1. Computation of Activity Rate for each activity pool:
ACTIVITY RATE
= Estimated overhead cost of for activity ÷ Expected activity
Activity cost pool | Estimated overhead cost (a) | Expected Activity (b) | Activity Rate (a/b) | |
Labor-related | $24400 | 4000 labor hrs | $6.10 | per DLH |
Machine-related | $5000 | 5000 machine hrs | $1 | per MH |
Machine setups | $13200 | 400 setups | $33 | per Setup |
Production orders | $24500 | 500 orders | $49 | per Order |
Product testing | $34100 | 1100 tests | $31 | per Test |
Packaging | $46800 | 3900 packages | $12 | per package |
General factory | $49600 | 4000 labor hrs | $12.40 | per DLH |
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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 $ 17,600 5,000 direct labor-hours Machine-related $ 14,000 8,000 machine-hours Machine setups $ 31,500 700 setups Production orders $ 32,900 700 orders Product testing $ 24,000 600 tests Packaging $ 90,000 3,600 packages General factory $ 50,000 5,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost...
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Part 1 of 2 Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Estimated Overhead Cost $ 25,600 $ 9,000 $ 23,000 $ 26,400 $ 39, 600 $ 57,800 $ 52,800 Expected Activity 4,000 direct labor-hours 9,000 machine-hours 500 setups 600 orders 1,200 tests 3,400 packages 4,000 direct labor-hours points eBook Hint Print Required:...
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 $ 17,600 $ 14,000 $ 31,500 $32.900 $24,000 $90.000 $50,000 Expected Activity 5,000 direct labor-hours 8,000 machine-hours 700 setups 700 orders 600 tests 3.600 packages 5,000 direct labor-hours 1. Compute the activity rate for each activity cost pool. (Round your answers to...
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 setup Production orders Product testing Packaging General factory Estimated Overhead Cost $ 24,400 $5,000 $ 13, 200 $ 24,500 $ 34, 100 $ 46,800 $ 49,600 Expected Activity 4,000 direct labor-hours 5,000 machine-hours 400 setup 500 orders 1,100 teste 3,900 packages 4,000 direct labor-hours Exercise 4-2 Part 2 2. Compute the company's predetermined...
R 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
1. Compute the activity rate for each activity cost pool....
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...
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 $ 22,000 $ 12,500 $ 25,600 $ 14,100 $ 38,000 $ 61,200 $ 57,600 Expected Activity 4,000 direct labor-hours 10,000 machine-hours 800 setups 300 orders 1,000 tests 3,400 packages 4,000 direct labor-hours Exercise 4-2 Part 2 2. Compute the company's predetermined overhead...
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 $ 31,200 5,000 direct labor-hours Machine-related $ 1,250 5,000 machine-hours Machine setups $ 36,000 1,200 setups Production orders $ 18,000 500 orders Product testing $ 22,000 1,100 tests Packaging $ 42,900 3,900 packages General factory $ 56,000 5,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost...
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 $ 52,000 8,000 direct labor-hours Machine-related $ 15,000 20,000 machine-hours Machine setups $ 42,000 1,000 setups Production orders $ 18,000 500 orders Product testing $ 48,000 2,000 tests Packaging $ 75,000 5,000 packages General factory $ 108,800 8,000 direct labor-hours Exercise 4-2 Part 1 Required: 1. Compute the activity rate...
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 $ 31,200 5,000 direct labor-hours Machine-related $ 1,250 5,000 machine-hours Machine setups $ 36,000 1,200 setups Production orders $ 18,000 500 orders Product testing $ 22,000 1,100 tests Packaging $ 42,900 3,900 packages General factory $ 56,000 5,000 direct labor-hours 2. Compute the company's predetermined overhead rate, assuming that the...