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 $52,000 8,000 direct labor-hours
Machine-related $15,000 20,000 machine-hours
Machine setups $42,000 1,000 setups
Production orders $18,000 500 orders
Product testing $48,000 2,000 tests
Packaging $75,000 5,000 packages
General factory $108,800 8,000 direct labor-hours
Required:
Compute the activity rate for each activity cost pool.
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