E4-4 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. Assign traditi (LO 1, Estimated wheels produced. Direct labor hours per wheel Car 40,000 Truck 10,000 XL Total estimated overhead costs for the two product lines are $770,000. Instructions (a) Compute the overhead cost assigned to the car wheels and truck wheels, assuming (b) Hermann is not satisfied with the traditional method of allocating overhead because that direct labor hours is used to allocate overhead costs. 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. Estimated Overhead Costs $220,000 280,000 270,000 Expected Use of Activity Cost Pools Setting up machines Assembling Inspection Cost Drivers 1,000 setups 1,200 inspections 70,000 labor hours Compute the activity-based overhead rates for these three cost pools. (c) Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information