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1.67/5 View Policies Show Attempt History Current Attempt in Progress Cullumber Inc. manufactures two products: car wheels and truck wheels. To determine the amount of

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1.67/5 View Policies Show Attempt History Current Attempt in Progress Cullumber Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Mark Harris, has developed the following Information: Car Truck 46,000 20,000 Estimated wheels produced Direct labour hours per wheel 4 Total estimated overhead costs for the two product lines are $1.720,000. (0) Your answer is correct Calculate the overhead cost astened to the car wheels and truck wheels, assuming that direct labour hours are used to allocate den Mark is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheel product line because of its complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs: Estimated Overhead Costs $364.000 Activity Cost Pools Setting up machines Assembling Inspection Estimated Use of Cost Drivers 700 set-ups 210,000 35,000 labour hours 1.146,000 2,292 Inspections Calculate the activity-based overhead rates for these three cost pools. Cost Pool Rate Setting up machines $ per set-up Assembling $ per labour hour Inspection $ per inspection

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