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Rustafson Corporation is a diversified manufacturer of consumer goods. The companys activity-based costing system has the fo
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per DLH per
2. Compute the companys predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhea
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Answer #1
Req 1 Activity Cost Pool Estimated Cost Expected Activity Activity Rate = Estimated cost/expected activity
Labor                    17,600                      5,000                                                  3.52 per DLH
Machine                    14,000                      8,000                                                  1.75 per MH
Setup                    31,500                          700                                                45.00 per setup
PO                    32,900                          700                                                47.00 per order
Product testing                    24,000                          600                                                40.00 per test
Packaging                    90,000                      3,600                                                25.00 per package
General                    50,000                      5,000                                                10.00 per DLH
Total                 260,000
Req 2 Predetermined overhead = estimated overhead / estimate total direct labour hour
52.00
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