Bramble 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. Car Truck 39,000 15,000 Estimated wheels produced Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $890,400. Calculate overhead rate. (Round answer to 2 decimal places, eg. 12.25.) Overhead rate $ per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs Car wheels $ Truck wheels VA 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 Use of Cost Drivers Estimated Overhead Costs $252,000 1,000 Setups Activity Cost Pools Setting up machines Assembling Inspection 336,000 84,000 tabor hours 1,200 inspections 302,400 Compute the activity-based overhead rates for these three cost pools. Compute the activity based overhead rates for these three cost pools Overhead Rates $ Setting up machines Assembling $ Inspection 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 Estimated Use of Cost Drivers per Product Car Truck 200 800 Number of setups Direct labor hours Number of inspections 39.000 45,000 100 1.100 Estimated Use of Cost Drivers per Product Car Truck 200 800 Number of setups 39,000 45,000 Direct labor hours 100 1,100 Number of inspections Car Wheels Truck Wheels I $ $ Setting up machines Assembling $ $ Inspection $ $ Total cost assigned $ $