Compute the cost that is assigned to the car wheels and truck wheels product lines using...

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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 Number of setups Direct labor hours Number of inspections Setting up machines $ Assembling Inspection $ 800 42,000 33,000 $ Car Total cost assigned $ 200 Truck 100 1,100 Car Wheels $ S $ $ Truck Wheels 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. Estimated wheels produced Direct labor hours per wheel Car Truck 42,000 11,000 1 3 Total estimated overhead costs for the two product lines are $870,000. 4 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 Number of setups Direct labor hours Number of inspections Setting up machines $ Assembling Inspection $ 800 42,000 33,000 $ Car Total cost assigned $ 200 Truck 100 1,100 Car Wheels $ S $ $ Truck Wheels 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. Estimated wheels produced Direct labor hours per wheel Car Truck 42,000 11,000 1 3 Total estimated overhead costs for the two product lines are $870,000. 4

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