Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has...
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Accounting
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
$ 20,400
10,000
direct labor-hours
Machine-related
$ 2,000
8,000
machine-hours
Machine setups
$ 20,400
600
setups
Production orders
$ 18,400
400
orders
Product testing
$ 29,600
800
tests
Packaging
$ 79,200
3,600
packages
General factory
$ 58,000
10,000
direct labor-hours
Exercise 4-2 Part 2 (Algo)
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.)
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