Oriole Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, George Robinson, has developed the following information: Car Truck Estimated wheels produced 40,000 20,000 Direct labour hours per wheel 8 Total estimated overhead costs for the two product lines are $1,920,000. (a) Your answer is correct. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. (b) Car wheels 960000 Truck wheels $ 960000 Total overhead $ 1920000 eTextbook and Media Attempts: 1 of 3 used George is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheel 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 Activity Cost Pools Costs Estimated Use of Cost Drivers Setting up machines $364,000 700 set-ups Assembling 350,000 35,000 labour hours Inspection 1,206,000 2.412 inspections Calculate the activity-based overhead rates for these three cost pools. Cost Pool Rate Setting up machines $ per set-up Assembling per labour hour Inspection $ per inspection eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer