Ano marctures to products. car wheels and truck wheels. To determine the mount of overhead to each product line, the controler Robert Hermann has developed the following information Car 39000 Estimated wheels produced Direct labor hours per wheel Truck 11000 3 Total estimated overhead costs for the two product lines are $835.200 Calculate overhead rate Round armwer to 2 decimal poorses 12.25) Overhead rate $ per direct labor hour Compute the overheadostigned to the carwandtruckwheels, assuming that direct labor hours is used to allocate overhead costs $ Truck wheels 5 Hermann is not satisfied with the traditional method of allocating overhead because he believes that most of the head costs relate to the truck wheels product line because of its complete therefore develop the following three aceity cost pools and related cost drives to better understand the costs Activity Cost Pool Setting chines Assembling Inspection Cost Drivers 1,000 Setups 72,000 lbor hours 1,200 Inspections Estimated Overhead Costs $216.000 360.000 259200 Comote the activity based overhead rates for these three contpools Overheads Setting machines $ $ Assembling Inspection $ Compute the cost that is assigned to the car wheels and track wheels product linesia-based costingom, the following information Estimated Use of Cost Drivers per Product Turk Number of setups 300 Direct labor hours 39.000 30.000 Number of Inspections 1100 Car Wheels Truck Wheels 5 $ Inection $ 5 Total cost signed Altex inc manufactures two products car wheels and trude when to determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following formation Car Truck Estimated wheels produced 39.000 11.000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $825.200 Calculate overhead rate Round answer to 2 decimal places, e 1225) Overhead rate $ per direct labor hour Compute the overhead cost assigned to the car wheels and trade suming that direct labor hours is used to allocate 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 truckwheels product line because of its comply He therefore develops the following the activity cost pools and related cost drivers to better understand these costs Estimated Use of Edward Activity Cost Pools Cost Drivers Setting up machines 5230.000 Assembling 72,000 labor hours 360.000 Inspection 1.200 Inspections Compute the activity based overhead rates for these three cost Overhead Rates Setting up machines $ Assembling $ $ Compute the cost that is assigned to the car wheels and truck whgroduct lines based costing system Drenthe following information Estimated Use of Car Drivers per Product Number of setups Direct labor hours Number of inspection 1100 $ 5 5 5 5 3 5
