Current Attempt in Progress Altex 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 Estimated wheels produced 39,000 15,000 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, e.g. 12.25.) Overhead rate $ eTextbook and Media 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. Car wheels Car wheels Truck wheels $ eTextbook and Media 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. Activity Cost Pools Estimated Use of Cost Drivers Estimated Overhead Costs Setting up machines 1,000 setups $252,000 Assembling 84,000 labor hours 336,000 Inspection 1,200 inspections 302,400 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines $ Assembling