Question: need help with last chart please Altex Inc., manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to



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. Truck Estimated wheels produced 44,000 9,000 Direct labor hours per wheel 3 Car 1 Total estimated overhead costs for the two product lines are $823.600. (a 1) Your answer is correct. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate $ 11.60 per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs Car wheels $ 510400 Truck wheels $ 313200 Hermann is not satisfied 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 Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1.000 setups $213.000 Assembling 71.000 labor hours 355.000 Inspection 1.200 inspections 255,600 Compute the activity based overhead rates for these three cost pools. Overhead Rates Setting up machines $ 213 Assembling $ 5 Inspection $ 213 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 Number of setups Direct labor hours 27.000 Number of inspections 1.100 800 200 44,000 100 Car Wheels Truck Wheels Setting up machines $ $ Assembling $ $ Inspection $ $ $ $ Total cost assigned
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