Il ne r llowing information applies to tne questions displayed below. Rustafson

Question

Il ne r llowing information applies to tne 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 Overhead Cost Activity Cost Pool Labor-related Machine-related Machine setups Production orders Product testing Packaging General factory Expected Activity $29,200 7,000 $18,000 $24,000 $24,000 $47,600 $59,600 4,000 direct labor-hours 7,000 machine-hours 500 setups 500 orders 1,200 tests 3,400 packages 4,000 direct labor-hours

Explanation / Answer

Calculate predetermine overhead rate :

Labour related 29200 Machine related 7000 Machine setup 18000 Production order 24000 Product testing 24000 Packaging 47600 General factory 59600 Total estimated overhead cost 209400 Estimated labour hour 4000 Predetermine overhead rate 52.35 per DLH

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---