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Cullumber Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Mark

Cullumber Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Mark Harris, has developed the following information:

Car

Truck

Estimated wheels produced

46,000

20,000

Direct labour hours per wheel

4

8

Total estimated overhead costs for the two product lines are $1,720,000.

A) 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

$enter a dollar amount

Truck wheels

$enter a dollar amount

Total overhead

$enter a total amount

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