Question
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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