Answer:
Rustafson Corporation
Activity rates:
Activity Cost Pool Activity Rates
Labor-related $2.90 per direct labor-hour
Machine-related $0.50 per machine-hour
Machine setups $30 per setup
Production orders $45 per order
Product testing $26 per test
Packaging $10 per package
General factory $6.85 per direct labor-hour
Explanation:
a) Data and Calculations:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $ 23,200 8,000 direct labor-hours
Machine-related $ 5,000 10,000 machine-hours
Machine setups $ 36,000 1,200 setups
Production orders $ 27,000 600 orders
Product testing $ 23,400 900 tests
Packaging $ 37,000 3,700 packages
General factory $ 54,800 8,000 direct labor-hours
Activity rates:
Activity Cost Pool Estimated Overhead Cost Activity Rates
Labor-related $ 23,200/8,000 $2.90/direct labor-hour
Machine-related $ 5,000/10,000 $0.50/machine-hour
Machine setups $ 36,000/ 1,200 $30/setup
Production orders $ 27,000/600 $45/order
Product testing $ 23,400/900 $26/test
Packaging $ 37,000/3,700 $10/package
General factory $ 54,800/8,000 $6.85/direct labor-hour
