Exercise 4-4 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 Total estimated overhead costs for the two product lines are $830,000 35,500 11,000 Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate 12.21 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. (Round answers to 0 decimal places, e.g. 1,575.) Car wheels Truck wheels 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. Expected Use of Cost Drivers Estimated Overhead Costs Activity Cost Pools Setting up machines Assembling 1,000 setups $210,000 340,000 280,000 68,500 labor hours 1,200 inspections Compute the activity-based overhead rates for these three cost pools. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Setting up machines Assembling 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 Car Truck Number of setups Direct labor hours Number of inspections 800 5,500 33,000 00 1,100 200 Car Wheels Truck Wheels Setting up machines Assembling Inspection Total cost assigned Click if you would like to Show Work for this qustion: pen Show Work