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Teaching Since: May 2017
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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 18 Aug 2017 My Price 13.00

Rustafson Corporation

Please show all work done, including calculations, to receive full points.

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   $ 50,000   8,300 direct labor-hours
  Machine-related   $ 14,900   21,025 machine-hours
  Machine setups   $ 42,000   500 setups
  Production orders   $ 19,000   400 orders
  Product testing   $ 49,000   2,100 tests
  Packaging   $ 68,125   5,200 packages
  General factory   $ 108,125   8,300 direct labor-hours
 

rev: 03_04_2014_QC_45868

references

2.

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

 

3.

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   

references

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 05:08 PM My Price 13.00

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