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Exercise 3-2 Compute Activity Rates [LO2]

[The following information applies to the questions displayed below.]

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		$	51,000		7,600	direct labor-hours
	Machine-related		$	14,700		19,225	machine-hours
	Machine setups		$	43,000		700	setups
	Production orders		$	19,000		400	orders
	Product testing		$	48,000		2,100	tests
	Packaging		$	68,125		4,500	packages
	General factory		$	114,125		7,600	direct labor-hours

rev: 03_04_2014_QC_45868

References

Section BreakExercise 3-2 Compute Activity Rates [LO2]

8.

value: 5.78 points

Required information

Exercise 3-2 Part 1

Required:

1.	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

rev: 03_04_2014_QC_45868

References

WorksheetExercise 3-2 Part 1

9.

value: 5.78 points

Required information

Exercise 3-2 Part 2

2.	Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.)

Predetermined overhead rate

$

per DLH

Exercise 3-2 Compute Activity Rates [LO2] IThe following informotion opplies to the questions displayed belowJ Rustafson Corporation is o diversified manufacturer of consumer goods. The compony's activity-based costing system hes the following seven activity cost pools: Estimated Activity Cost Pool Overhead Cost Expected Activity 51.000 Lebo elated 7.600 direc abor-hours 14,700 Machin e-related 19,225 machine-hours $43.000 Machine setups 700 setups 19.000 Production orders 400 orders $48.000 2100 tests Product testing Peckaging 4.500 packages 68,125 114.125 General factory 7.600 direc abor-hours References Section Break Exercise 3-2 Compute Activity Rates LO2]

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