Question
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 43,500 15,000
Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $776,000.
Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.(Round answers to 0 decimal places, e.g. 1,575.)
Car wheels $_____
Truck wheels $_______
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