1.67/5 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 Total estimated overhead costs for the two product lines are $1.720,000. (0) Your answer is correct Calculate the overhead cost astened to the car wheels and truck wheels, assuming that direct labour hours are used to allocate den (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 $ $ 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 $364,000 Activity Cost Pools Setting up machines Assembling Inspection Estimated Use of Cost Drivers 700 set-ups 35,000 labour hours 2,292 inspections 210,000 1,146,000 Calculate the activity-based overhead rates for these three cost pools. Cost Pool Rate Setting up machines $ 520 per set-up Assembling $ 6 per labour hour Inspection 500 per inspection