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Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert

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Altex 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. Cor Truck 44,500 9,000 Estimated wheels produced Direct labor hours per wheel Total estimated overhead costs for the two product lines are $867,000. Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25) Overhead rate per direct labor hour Cempute the overthead cost asigned to the car wheels and truci wheels, asursing that direct labor hours is uned to allcate ovarhead costs. (Round answers to o decimal decimal places, e.g- 1,575) Car wheels Truck wheels NK TO TEXT nn 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 it complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs Expected Use of Cost Drivers Estimated Over Activity Cost Pools Setting up machines Assembling Inspection Costs 1,000 setups 71,500 labor hours 1,200 inspections $231,000 358,000 278,000 Compute the activity-based overhead rates for these thre cosat pook. (Round answers to 2 decimal places cs 1225) Overhead Rates Setting up machines Assembling Inspection LINK TO TEX Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, olven the following information. (Round answers to o decimal places,e.g. 1,575.) Expected Use of Cost Drivers per Product Truck Number of setups 200 800 Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, oiven the fallowing information (Round answers to o decimal places, e.g. 1,575.) Expected Use of Cost Drivers per Product Car Truck Number of setups Direct labor hours Number of inspections 200 800 44,500 27,000 100 1,100 Car Wheels Truck Wheels Setting up machines Assembling Inspection Total cost assigned s

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