90.2K

Verified Solution

Link Copied!

Exercise $4-2($Algo$)$ Compute Activity Rates $[$LO$4-2]$

Skip to question

$[$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 $ $24,4004,000$ direct labor$-$hours

Machine$-$related $ $5,0005,000$ machine$-$hours

Machine setups $ $13,200400$ setups

Production orders $ $24,500500$ orders

Product testing $ $34,1001,100$ tests

Packaging $ $46,8003,900$ packages

General factory $ $49,6004,000$ direct labor$-$hours

Exercise $4-2$ Part $1($Algo$)$

Required:

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

Required information

Exercise $4-2($Algo$)$ Compute Activity Rates $[$LO$4-2]$

$[$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:

Estimated

Activity Cost Pool

Labor$-$related

Machine$-$related

Machine setups

Production orders

Product testing

Packaging

General factory

Overhead cost

Expected Activity

$$24,400,4,000$ direct labor$-$hours

$$5,000,5,000$ machine$-$hours

$$13,200$

$400$ setups

$500$ orders

$$24,500,1,100$ tests

$$46,800,3,900$ packages

$$49,600,4,000$ direct labor$-$hours

Exercise $4-2$ Part $1($Algo$)$

Required:

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

Answer & Explanation Solved by verified expert

See Answer