Alonzo Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, YuYu Ortega, has developed the following information: Car Truck Estimated wheels produced 43,000 13,000 Direct labour hours per wheel 2 8 Total estimated overhead costs for the two product lines are $1,140,000. (a) Your answer is correct. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. Car wheels $ 516000 Truck wheels $ 624000 Total overhead $ 1140000 YuYu 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 Activity Cost Pools Estimated Use of Cost Drivers Costs Setting up machines 1,000 set-ups $540,000 Assembling 36,000 labour hours 288,000 Inspection 624 inspections 312.000 Calculate the activity-based overhead rates for these tifree cost pools. Cost Pool Setting up machines Assembling Inspection Rate 540 per set-up 8 per labour hr 500 per inspection Calculate the cost that is assigned to the car and truck product lines using an activity-based costing system, given the following information: Estimated Use of Cost Drivers per Product Car Truck Number of set-ups 190 810 Direct labour hours 20,700 15,300 Number of inspections 60 564 Overhead assigned $ Car Truck $