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Compute the activity rate for each activity cost pool

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Reference no: EM131944660

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
$ 18,400
2,000 direct labor-hours

Machine-related
$ 5,000
10,000 machine-hours

Machine setups
$ 46,800
1,200 setups

Production orders
$ 23,000
500 orders

Product testing
$ 27,200
800 tests

Packaging
$ 39,600
3,600 packages

General factory
$ 51,600
2,000 direct labor-hours

Required:

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

Activity Cost Pool Activity Rate
Labor-related
per DLH
Machine-related
per MH
Machine setups
per setup
Production orders
per order
Product testing
per test
Packaging
per package
General factory
per DLH

Reference no: EM131944660

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