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Carla Vista Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Joseph Moore, has developed the following information: Estimated wheels produced 43,000 20,000 Direct labour hours per wheel 2 4 Total estimated overhead costs for the two product lines are $830,000. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. Car wheels 5 l Truck wheels $ l Total overhead 35 l eTextbook and Media Joseph 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: Setting up machines $306,000 600 set-u ps Assembling 288,000 36,000 labour hours lns pection 236,000 472 inspections Calculate the activity-based overhead rates for these three cost pools. Setting up machines $ l per set-up Assembling $ l per labour hour Inspection $ l per inspection eTextbook and Media Calculate the cost that is assigned to the car and truck product lines using an activity-based costing system, given the following information: Truck wheels $ Total overhead $ e Textbook and Media Joseph 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 $306,000 600 set-ups Assembling 288,000 36,000 labour hours Inspection 236,000 472 inspections Calculate the activity-based overhead rates for these three cost pools. Cost Pool Rate Setting up machines to per set-up Assembling to per labour hour Inspection $ per inspection eTextbook and Media Calculate the cost that is assigned to the car and truck product lines using an activity-based costing system, given the following information: Use of Cost Drivers per Product Car Truck Number of set-ups 130 470 Direct labour hours 21,900 14,100 Number of inspections 45 427 Car Truck Overhead assigned $ $ eTextbook and Media