Activity-Based Overhead Rates Assignment

Altex Inc. manufactures two merchandise: car wheels and truck wheels. To seek out out the amount of overhead to assigning to each product line, the controller, Robert Hermann, has developed the following knowledge. Truck Automotive Estimated wheels produced 36,000 12,000 Direct labor hours per wheel 1 three Full estimated overhead costs for the two product traces are $765,000. Calculate the overhead cost. (Spherical reply to 2 decimal places, eg. 12.25.) Overhead cost $ per direct labor hour eTextbook and Media Compute the overhead value assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. (Spherical options to zero decimal places, e.g. 1,575.) Sk $ Automotive wheels $ Truck wheels Hermann is not glad with the usual strategy of allocating overhead because of he believes that most of the overhead costs relate to the truck wheels product line because of its complexity.

He, because of this reality, develops the following three train value swimming swimming pools and related value drivers to greater understand these costs Estimated Overhead Anticipated Use of Train Worth Swimming swimming pools Worth Drivers Costs 1,000 setups $217,000 Organising machines Assembling 72,000 labor hours 274,000 Inspection 1,200 inspections 274,000 Compute the activity-based overhead prices for these three value swimming swimming pools. (Spherical options to 2 decimal places, e.g. 12.25.) Overhead Fees $ Organising machines Assembling $ Inspection не Compute the price that is assigned to the car wheels and truck wheels product traces using an activity-based costing system, given the following knowledge. (Spherical options to O decimal places, e.g. 1,575.) Anticipated Use of Worth Drivers per Product Automotive Truck Number of setups 200 800 Direct labor hours 36,000 36,000 Number of inspections 100 1,100 Automotive Wheels Truck Wheels $ $ Organising machines $ Assembling $ $ Inspection $ $ Full value assigned. .