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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 Car Truck 12.000 43.000 Estimated wheels produced Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $837 400 Calculate overhead rate. (Round answer to 2 decimal places, ex 1225) Overhead rate S per direct labor hour e Tectbook and Media Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to assign overhead costs. Car wheels Truck wheels eTextbook and Media 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 and related cost drivers to better understand these costs. Estimated Overhead Costs Estimated Use of Cost Drivers Activity Cost Pools Setting up machines Assembling $237.000 1000 Setups 316,000 79.000 labor hours Inspection 284 400 1.200 Inspections Compute the activity based overhead rates for these three cast pools. OR Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines setup Assembling $ /DUH Inspection finspection eTextbook and Media 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 Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 43.000 35.000 Number of inspections 100 1.100 Car Wheels Truck Wheels 43,000 36,000 Direct labor hours Number of inspections 100 1.100 Car Wheels Truck Wheels Setting up machines $ Assembling $ $ Inspection $ Total cost assigned eTextbook and Media Attempts of used Suit Sveror Late acer

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