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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
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 $846,800. Calculate overhead rate. (Round answer to 2 decimal ploces, eg. 12.25.) Overhead rate per direct labor hour eTextbook and Medla 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 \$ $ 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. Compute the activity-based oyerhead rates for these three cost pools. 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
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