Question: Please answer the following part (b) and (c) Current Attempt in Progress Altex Inc. manufactures two products: car wheels and truck wheels. To determine the



Current Attempt in Progress 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 43,000 1 Truck 11,000 3 Total estimated overhead costs for the two product lines are $881,600. (a 1) Your answer is correct Calculate overhead rate. (Round answer to 2 decimal places, s. 12.25.) Overhead rate $ 11.60 per direct labor hour (a2) Your answer is correct. 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 $ 498.800 Truck wheels $ 382,800 (b) Your answer is partially 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 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 $228,000 Assembling 76,000 Tabor hours 380,000 Inspection 1.200 inspections 273,600 Compute the activity based overhead rates for these three cost pools. Overhead Rates Setting up machines $ 228.00 Assembling $ Inspection $ Question Part Score 0.13/0.38 (c) The parts of this question must be completed in order. This part will be available when you complete the part above
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