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Exercise 3-2 Compute Activity Rates [LO3-2]

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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		$	19,600		10,000	direct labor-hours
	Machine-related		$	7,000		7,000	machine-hours
	Machine setups		$	23,400		600	setups
	Production orders		$	16,500		500	orders
	Product testing		$	22,400		800	tests
	Packaging		$	62,900		3,700	packages
	General factory		$	60,000		10,000	direct labor-hours

Exercise 3-2 Part 1

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

Activity pool Activity rate

labor related_______per dlh

Machine related ______per mh

machine setups _______per setup

production orders________per order

procuct testing____per test

packaging_____per package

general factory______per dlh

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

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