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 Estimated whoels produced Direct labor hours per wheel Car 40,000 1 Truck 11,000 3 Total estimated overhead costs for the two product lines are $846,800 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. Activity Cost Pools Setting up machines Assembling Inspection Estimated Use of Cost Drivers 1.000 setups 73,000 labor hours 1.200 Inspections Estimated Overhead Costs $219,000 365,000 262.800 Compute the activity based overhead rates for these three cost pools. Overhead Rates $ Setting up machines Assembling $ $ Inspection e Textbook and Media Attempts: 0 of 1 used Submit Answer Save for later