Question 1 of 5 3.33/5 View Policies Show Attempt History Current Attempt in Progress Cullumber Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Mark Harris, has developed the following information: Car Truck 46,000 20,000 Estimated wheels produced Direct labour hours per wheel 4 8 Total estimated overhead costs for the two product lines are $1,720,000 (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 codec t6 Question 1 of 5 3.33/5 E (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. Car wheels 920000 Truck wheels 800000 Total overhead 1720000 e Textbook and Media Attempts: unlimited 3.33/5 E > estion 1 of 5 Mark 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 Costs Estimated Use of Cost Drivers Activity Cost Pools Setting up machines $364.000 700 set-ups 210,000 35.000 labour hours Assembling Inspection 1,146,000 2.292 inspections Calculate the activity-based overhead rates for these three cost pools. Cost Pool Rate $ 520 Setting up machines per set-up $ 6 Assembling per labour hour $ 500 Inspection per inspection 1 > Question 1 of 5 (C) 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 130 570 Number of set-ups Direct labour hours Number of inspections 21,200 13,800 55 2,237 Car Truck Overhead assigned $ Thua hen ho la