-13 View Policies Current Attempt in Progress Sunland Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information Estimated wheels produced Direct labor hours per wheel Car 42,000 1 Truck 11,000 3 Total estimated overhead costs for the two product lines are $870.000 Calculate overhead rate. (Round answer to 2 decimal places, 3. 12.250 Overhead rate $ per direct labor hour eTextbook and Media Compute the overhead cost asslined to the car wheels and truck wheeling that direct labor hours is used to allocate overhead costs S Car wheels $ Truck wheels Textbook and Media -/ 35 Hermann is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develop the following three activity cost pools and related cost drivers to better understand these costs Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Setting up machines 1.000 setups $225,000 Assembling 75,000 tabor hours 375.000 Inspection 1.200 inspections 270.000 Costs Compute the activity based overhead rates for these three cost pools. Overhead Rates Setting up machines $ Assembling $ Inspection eTextbook and Media Compute the cost that is assigned to the car whick and truck wheels product lines using an activity-based contine stem glven the following information Estimated Use of Cost Drivers per Product Car Truck eTextbook and Media Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system given the following information Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 42.000 33.000 Number of inspections 1.100 100 Truck Wheels Car Wheels S S Setting up machines 5 5 Assembling $ $ Inspection 5 5 Total cost assigned eTextbook and Media Attempts nited St o