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Altex Inc. manufactures two products: car whesis and truck whas ls. To determine the amount of ovarhead to assign to each product line, the controllar,
Altex Inc. manufactures two products: car whesis and truck whas ls. To determine the amount of ovarhead to assign to each product line, the controllar, Robsrt Harmann, has developed the following information. Total estimated ovarhaad costs for the two product lines are $768,000. Caleulate overhead rate. (Round answer to 2 decimal places, e.g. 12.25 . Overhasd rate $ per diract labor hour Compute the ovarhead cost assigned to the car whesls and truck whesks, assuming that direct labor hours is used to assign ovarhaad cocts. Carwhas s $ Truckwhes $ Hermann is not satisfied with the traditional mathod of allocating ovarhead becausa he believes that most of the ovarhead costs relate to the truek whesls product lins because of its complaxity. He tharsfors develops the follawing thres activity cost pools and related cost drivers to better understand these cocts. Compute the activity-based overhead rates for these thres cost pools. Compute the cost that is assigned to the car whesls and truck whesls product lines using an activity-based coating system, siven the following information
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