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Carla Vista Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller,
Carla Vista Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Joseph Moore, has developed the following information: Car Truck Estimated wheels produced 43,000 20,000 Direct labour hours per wheel 2 4 Total estimated overhead costs for the two product lines are $830,000. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. Car wheels Truck wheels $ Total overhead $ $
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