Exercise 4-4 a1-a2, b-c (Video) each product line, the controller, Robert Hermann, has developed the following information. Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign Truck Car Estimated wheels produced 39,000 11.000 Direct labor hours per wheel 1 Total estimated overhead costs for the two product lines are $835.200. Calculate averhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate per direct labor hour LINK TO TEXT LINK TO TEXT VIeo A used to allocate overhead costs. Compute the overhead cost assigned the car wheels and truck wheels, assuming that direct labor hours. Car wheels Truck wheels XT LINK XT LINK Hermann is not satisfied with the traditional method f allocating overhead because he believes that most f the overhead costs relate to the truck wheels product line because f its complexity. He therefore develops the following th pools and related cost drivers to better understand these costs. Estimated Use of Cost Drivers Estimated Cost Costs Pools Setting up machines 1,000 setups $216,000 72,000 r Assembling 360.000 Inspection 1,200 inspections 259,200 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines Assembling Inspection LINK TO TEXT LINK TO TEXT vIDEO: SIMILAR EXERCISD 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 EstimatedUse Cost Drivers per Product Truck Car Number of setups 200 800 Direct labor hours 39,000 33,000 100 1,100 insnections Car Wheels Truck Wheels Setting up machines Assembling Inspection Total cost assigned $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT VIDEO: SIMELAB EXERCISE