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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. Total estimated overhead costs for the two product lines are $752600. Hermann is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead coste 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. Compute the activity-based overhead rates for these three cost pools

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