Deborah Villegas

Business

2 August, 20:40

Required information: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 $ 17,600 5,000 direct labor-hours Machine-related $ 14,000 8,000 machine-hours Machine setups $ 31,500 700 setups Production orders $ 32,900 700 orders Product testing $ 24,000 600 tests Packaging $ 90,000 3,600 packages General factory $ 50,000 5,000 direct labor-hours 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.)