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Find the company predetermined overhead rate

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Reference no: EM132530575

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                         $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

Question 1: 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.)

Reference no: EM132530575

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