Alonzo Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Yu Yu Ortega, has developed the following information: Car Truck 13,000 Estimated wheels produced Direct labour hours per wheel 41,000 2 Total estimated overhead costs for the two product lines are $960,000. 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 $ Truck wheels $ Total overhead $ 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: Activity Cost Pools Estimated Use of Cost Drivers Setting up machines Assembling Inspection 900 set-ups 37,000 labour hours 558 inspections Estimated Overhead Costs $459,000 222,000 279,000 Calculate the activity-based overhead rates for these three cost pools. Cost Pool Rate Setting up machines $ per set-up Assembling $ per labour hr Inspection $ 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 190 710 20,900 16,100 40 518 Number of set-ups Direct labour hours Number of inspections Car Truck Overhead assigned $ $