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. Car Truck estimated wheels produces 40,000 10,000 direct labor hours per wheel 1 3. Total estimated overhead costs for the two products lines are $770,000. Collapse question part (a1) correct answer your answer is correct. Calculate overhead rate. (round answer to 2 decimal place, e.g. 12.25). Overhead rate $Entry field with correct answer perdirect labor hour show solution show ansert link to text by accessing this question assistance, you will learn while you earn points based on the point potential policy set by your instructor. Attempts: 1 of 3 used. Collapse question part (a2) correct answer. 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 (round answer to 0 decimal places, e.g 1,575). Car wheels $__ entry field with correct answer Truck wheels $__entry field with correct answer. Show solution show answer lin to text. By accessing this question assistance, you will learn while you earn points based in the point potential policy set by instructor. attemts : 1of 3 used. Collapse question part b correct answer 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 and related cost drivers to better understand these costs. Activity costs pools, expected use of costs drivers estimated overhead costs. Setting up machines 1,000 setups $220,000 assembling 70,000 labor hours 280,000 inspection 1,200 inspections 270,000 Compute the activity-based overhead rates for these three cost pools. (Round answers to 2 decimal places, e.g. 12.25.) overhead rates setting up machines $__entry field with correct answer assembling $__entry field with correct answer inspection $__entry field with correct answer. Collapse question part c 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. (Round answers to 0 decimal places, e.g. 1,575.) expected use of costs drives per product car truck number of setups 200 800 direct labor hours 40,000 30,000 car wheels truck wheels setting up machines $ assembling $ inspection $ total cost assigned $
