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Business, 18.06.2020 01:57 lkmarus

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 $ 28,000 2,000 direct labor-hours Machine-related $ 5,000 10,000 machine-hours Machine setups $ 45,000 1,000 setups Production orders $ 30,000 600 orders Product testing $ 27,200 800 tests Packaging $ 64,600 3,800 packages General factory $ 51,200 2,000 direct labor-hours 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours.

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