Answered step by step
Verified Expert Solution
Question
1 Approved Answer
thisbis the updated first image GA tres 40000 w O TM Cew 5 Hermann is not satished with the traditional method of allocating overhead because
thisbis the updated first image
GA tres 40000 w O TM Cew 5 Hermann is not satished 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 drivers to better understand these costs. Estimated Use of Cost Drivers Estimated Overhead Costs Activity Cost Pools Setting up machines Assembling 1,000 setups $243,000 81,000 labor hours 324,000 Inspection 1,200 inspections 291.600 Compute the activity based overhead rates for these three cost pools. Overhead Rates Setting up machines $ Assembling $ Inspection $ e Textbook and Media Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information Estimated Use of Cost Drivers per Product Car Truck 200 800 Number of setups Direct labor hours Number of inspections 36,000 45,000 100 1.100 Car Wheels Truck Wheels $ Setting up machines $ Assembling Inspection $ $ $ $ Total cost assigned $ e Textbook and Media Attempts: unlimited Submit Answer Save for Later -/1 Question 3 of 6 View Policies Current Attempt in Progress Altec Inc, manufactures two products car wheels and truck wheels. To determine the amount of overhead to asinto each product line, the controller Robert Hermann, has developed the following information Cor Truck Estimated wheels produced 36.000 15,000 Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $858,600. Calculate overhead rate. {Round answer to 2 decimal places, 1225) Overhead rate per direct labor hour e Textbook and Media Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started