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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
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 Car Truck Estimated wheels produced 39,000 11.000 Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $835.200. 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. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 39.000 33,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines $ Assembling $ Inspection $ Total cost signed
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