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 40,000 11,000 Estimated wheels produced Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $846,800. Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $ per direct labor hour e Textbook and Media Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to assign overhead costs. Car wheels $ Truck wheels $ e Textbook and Media 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 Overhead Costs Activity Cost Pools Estimated Use of Cost Drivers Setting up machines $219,000 1,000 setups Assembling 245.000 73.000 labor hours Estimated Overhead Costs Activity Cost Pools Estimated Use of Cost Drivers Setting up machines $219.000 1,000 setups Assembling 365,000 73,000 labor hours Inspection 262,800 1,200 inspections Compute the activity-based overhead rates for these three cost poc Overhead Rates Setting up machines $ /setup Assembling $ /DLH Inspection $ Vinspection e Textbook and Media 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. Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 40,000 33,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines $ $ $ Assembling $ CA $ Inspection $ $ Total cost assigned $ $