Question 12 Altex Inc. 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. Car Estimated wheels produced 36,000 Truck 11,000 3 Direct labor hours per wheel 1 Total estimated overhead costs for the two product lines are $731,400. (a1) Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rates per direct labor hour Question 11 EcoFabrics has budgeted overhead costs of $1,096,200. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 522,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $417,600 and $678,600 is allocated to the design cost pool. Additional information related to these pools is as follows. Wool 116,000 1,160 Cotton 116,000 Machine hours Number of setups Total 232,000 1,740 580 (a1) Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12.25.) Overhead rates for activity-based costing Cutting per machine hour Design per setup