please do the whole question

2 E5.20 (LO 1, 2) Excel Alonzo Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, YuYu Ortega, has developed the following information: Car Truck Estimated wheels produced 40,000 10,000 Direct labour hours per wheel 6 Total estimated overhead costs for the two product lines are $840,000. Instructions a. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. b. Yuyu is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheel product line because of its complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs: Activity Cost Estimated Overhead Estimated Use of Cost Pools Costs Drivers Setting up $260,000 500 set-ups machines Assembling 280,000 35,000 labour hours Inspection 300,000 600 inspections Calculate the activity-based overhead rates for these three cost pools. c. Calculate the cost that is assigned to the car and truck product lines using an activity-based costing system, given the following information: Use of Cost Drivers per Product Car Truck Number of set-ups 100 Direct labour hours 20,000 15,000 Number of inspections 550 d. What do you believe YuYu should do? 400 50