Sandhill Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Thomas Taylor, has developed the following information:

Total estimated overhead costs for the two product lines are $1,030,000.

a. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs.

Estimated wheels produced Direct labour hours per wheel Car 47,000 2 Truck 14,000 8 Car wheels $ Truck wheels $ $ Total overhead $