4 Weeks Question 4 of 4 -/1 E View Policies Current Attempt in Progress Altex tre manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hormann, has developed the following information, Estimated Wheels produced Direct labor hours per wheel Car 44,000 1 Truck 15,000 3 Total estimated overhead costs for the two product lines are $854,400 Calculate overhead rote. Round answer to 2 decimal places, eg. 1225.) Overhead rate $ per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate ovechead costs Car wheels Truck whech $ 8 Dall $ 2 3 4 5 6 7 8 9 W E R T Y U O P S D F G H J K L 4-Week S III Question 4 of 4 Truck wheels $ 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 develops the following three activity cost pools and related cost drivers to better understand these costs. Activity Cost Pools Setting up machines Assembling Inspection Estimated Use of Cost Drivers 1,000 setups 89,000 labor hours 1.200 inspections Estimated Overhead Costs $267,000 267.000 320.400 Compute the activity based overhead rates for these three cost pools. Overhead Rates Setting up machines $ Assembling $ Inspection $ MACE CORAIS - DO A 1 1 2 3. 4 & 7 5 6 8 9 W E R T Y U 0 P s D F G H J K L 14-Week 5 Question 4 of 4 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 Car Estimated Use of Cost Drivers per Product Truck Number of setups 200 800 Direct labor hours 44000 45.000 Number of inspections 100 1.100 Car Wheels Truck Wheels $ $ Setting up machines Assembling $ $ Inspection $ $ 5 Total cost assigned $ Attempts of 3 used Sutimit Answer 30 FEE 96 5 4 3 5 7 8 9 0 W E R T T Y U 0 s D F G H J K L