nment CALCULATOR FULL SCREEN PRINTER VERSION

ment SCREEN Exercise 17-04 al-a2, b-c (Video) VERSION Coronado Inc. manufactures two products: Car wheels and truck wheels. To determine the arnount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck 40,000 11,000 Estimated wheels produced Direct labor hours per wheel Total estimated overhead costs for the two product lines are $846,800. Calculate overhead rate. (Round answer to decima/ places. e.g. 12.25.) Overhead rate 1 per direct labor hour Compute the cwerhead cost assigned to the car Wheels and truck wheels, assuming that direct labor hours is used to allate overhead costs. Car wheels Truck wheels $1 Hermann is not satisfied With the traditional rnethod of allocating overhead because he belmes that most of the overhead costs relate to the truck wheels product line because oi its complexity. He therefore develops the following three activity cost pools aru] related cost drivers to better understand these costs.