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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
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.] |
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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: |
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| Activity Cost Pool      |
Estimated |
Expected Activity | |||||
| Â | Labor-related | Â | $ | 50,000 | Â | 8,300 | direct labor-hours |
| Â | Machine-related | Â | $ | 14,900 | Â | 21,025 | machine-hours |
| Â | Machine setups | Â | $ | 42,000 | Â | 500 | setups |
| Â | Production orders | Â | $ | 19,000 | Â | 400 | orders |
| Â | Product testing | Â | $ | 49,000 | Â | 2,100 | tests |
| Â | Packaging | Â | $ | 68,125 | Â | 5,200 | packages |
| Â | General factory | Â | $ | 108,125 | Â | 8,300 | direct labor-hours |
| Â | |||||||
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.) |
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|   Activity Cost Pool    | Activity Rate       | |||
| Â | Labor-related | $ | per DLH | |
| Â | Machine-related | $ | per MH | |
| Â | Machine setups | $ | per setup | |
| Â | Production orders | $ | per order | |
| Â | Product testing | $ | per test | |
| Â | Packaging | $ | per package | |
| Â | General factory | $ | per DLH | |
| Â | ||||
rev: 03_04_2014_QC_45868
references
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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.) |
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| Â Â Predetermined overhead rate | $ | per DLH Â Â |
references
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