Exercise 17-4 (Part Level Submission) Car Truck (a1) Open Show Work SHOW SOLUTIO

Question

Exercise 17-4 (Part Level Submission)

Car

Truck

(a1)

Open Show Work

SHOW SOLUTION

LINK TO TEXT

(a2)

Open Show Work

LINK TO TEXT

Exercise 17-4 (Part Level Submission)

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 produced 42,000 11,000 Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $863,000.

Explanation / Answer

a1)

a2)

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Car Truck Estimated total labor hours 42,000*1 = 42,000 11,000*3 = 33,000

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