Question: need help with last section compute the cost thag is assigned to the car wheels and truck wheels product lines using ABC costing system Altex



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. Total estimated overhead costs for the two product lines are $796,800. (a1) Your answer is correct. Calculate overhead rate. (Round answer to 2 decimal places, e.s. 12.25.) Overhead rate 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 Truck wheels Attempts: 1 of 3 us (b) Your answer is correct. 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 an related cost drivers to better understand these costs. Hermann is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead co relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost poo related cost drivers to better understand these costs. Compute the activity-based overhead rates for these three cost pools. 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
