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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. Truck Car Estimated wheels produced 38,000 14,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $855,000. Calculate overhead rate.(Round answer to 2 decimol ploces, eo. 12.25.) per direct labor hour Overhead rate s overhead costs. (Round ansivers to o decimal places Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate e.g. 1,575) Car wheels s Truck wheels 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 Expected Use of Cost Drivers Activity Cost Pools $221,000 1,000 setups Setting up machines 349,000 80,000 labor hours 1,200 inspections Assembling 285,000 Inspection e.g. Compute the activity, based overhead rates for these three cost poos, (Round answers to a decimial ploces, ao. 12.2s.) Overhead Rates Setting up machines Assembling 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. (Rou decimal places, e.g. 1,575.) Expected Use of Cost Drivers per Product Truck Car 200 800 Number of setups 38,000 42,000 Direct labor hours 100 1,100 Number of inspections Truck Wheels Car Wheels Setting up machines Assembling Inspectiorn Total cost assigned

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