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 37,000 10,000 Direct labor hours per wheel 3 Total estimated overhead costs for the two product lines are $777,200. (a1) Your Answer Correct Answer Your answer is correct. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate $ eTextbook and Media Solution (a2) 11.60 per direct labor hour Attempts: 3 of 3 used Your answer is correct Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs Carwheels 429200 Truck wheels $ 348000 (b) Your answer is partially correct. 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 an related cost drivers to better understand these costs. Activity Cost Pools Estimated Use of Cost Drivers Estimated Overhead Costs Setting up machines 1,000 setups $201,000 Assembling 67,000 labor hours 335,000 Inspection 1,200 inspections 241,200 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines 20.1 Assembling $ 5 Inspection 201