*Exercise 18-4 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. Car Truck Estimated wheels produced Direct labor hours per wheel 1 Total estimated overhead costs for the two product lines are $. Condition gt requires numbers instead of "null" and "0" Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate per direct labor hour Condition gt requires numbers instead of "null" and "0" Compute the averhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. (Round answers to 0 decimal places, e.g. 1,575.) Car wheels Truck wheels Condition gt requires numbers instead of "null" and "0" 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. Estimated Overhead Costs Expected Use of Cost Drivers Activity Cost Pools Setting up machines Assembling 1,000 setups labor hours 1,200 inspections Inspection Compute the activity-based overhead rates for these three cost pools. (Round answers to 2 declmal places, e.g. 12.25.) Overhead Rates Setting up machines Assembling Inspection Condition gt requires numbers instead of "null" and "0" Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, glven the following information. (Round answers to 0 decimal places, e.g. 1,575.) Expected Use of Cost Drivers per Product Condition gt requires numbers instead of "null" and "0" 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. (Round answers to 0 decimal places, e.g. 1,575.) Expected Use of Cost Drivers per Product Truck Car Number of setups 200 800 Direct labor hours Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines Assembling Inspection Total cost assigned Ouestion Attormntei oE 3 usad HA *Exercise 18-4 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. Car Truck Estimated wheels produced Direct labor hours per wheel 1 Total estimated overhead costs for the two product lines are $. Condition gt requires numbers instead of "null" and "0" Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate per direct labor hour Condition gt requires numbers instead of "null" and "0" Compute the averhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. (Round answers to 0 decimal places, e.g. 1,575.) Car wheels Truck wheels Condition gt requires numbers instead of "null" and "0" 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. Estimated Overhead Costs Expected Use of Cost Drivers Activity Cost Pools Setting up machines Assembling 1,000 setups labor hours 1,200 inspections Inspection Compute the activity-based overhead rates for these three cost pools. (Round answers to 2 declmal places, e.g. 12.25.) Overhead Rates Setting up machines Assembling Inspection Condition gt requires numbers instead of "null" and "0" Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, glven the following information. (Round answers to 0 decimal places, e.g. 1,575.) Expected Use of Cost Drivers per Product Condition gt requires numbers instead of "null" and "0" 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. (Round answers to 0 decimal places, e.g. 1,575.) Expected Use of Cost Drivers per Product Truck Car Number of setups 200 800 Direct labor hours Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines Assembling Inspection Total cost assigned Ouestion Attormntei oE 3 usad HA
