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PLEASE LOOK AT THE THIRD PHOTO.. Need help on that one Alte in manufactures two products. car wheels and truck wheels. To determine the amount
PLEASE LOOK AT THE THIRD PHOTO.. Need help on that one
Alte in 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 Estimated wheels produced Direct labor hours per wheel Car 39,000 1 Truck 13,000 3 Total estimated overhead costs for the two product lines are $826,800. (a1 Your answer is correct Calculate overhead rate. (Round answer to 2 decimal places, eg 1225) Overhead rate $ 10.60 per direct labor hour o 2 3 7 O P 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 delvers to better understand these costs. Activity Cost Pools Setting up machines Assembling Inspection Estimated Use of Cost Drivers 1,000 setups 78,000 Isbor hours 1.200 inspections Estimated Overhead Costs $234.000 312.000 280.800 Compute the activity based overhead rates for these three cost pools Overhead Rates Setting up machines 5 Assembling $ Inspection Audi 0 0 % 5 & 7 B. 9 2 2 6 3 P W Step by Step Solution
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