chead using traditional nd ABC.

Excel

E$4\mathrm{.}4($LO $1,2),$ AN Altex Inc. manufactures two products Car wheels and guck wheels To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. the following information.

Total estimated overhead costs for the two product lines are $$770,\frac{{000}_{7701000}}{70,000}=11$$ fer direct labor hou Instructions

a$.$ Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to assign overhead costs.

b$.$ 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.

$\backslash$table$[[$Activity Cost Pools,$\backslash$table$[[$Estimated Use of$],[$Cost Drivers$]],\backslash$table$[[$Estimated Overhead$],[$Costs$]]],[$Setting up machines,$1,000$ setups,$$220,000$