Can anyone help me please? 17-4 Exercise 17-4 Altex Inc. manufactures two produc

Question

Can anyone help me please? 17-4

Exercise 17-4 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 rLI Estimated wheels produced 39,980 9,300 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $701,440 Calculate overhead rate. (Round answer to 2 decimal places, e.g. $12.25.) Overhead rate per direct labor hour LINK TO TEXT Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs Car wheels $ Truck wheels $ LINK TO TEXT

Explanation / Answer

1st case:

Total Over head=$701,440

Total labour hours=39,980+9,300*3=67,880

Overhead rate per hour=$701,440/67,880=$10.3335

2nd Case:

Calculation of overhead rate

Calculation of cost

particulars total cost cost drivers cost per driver Setting up machinery $217,000 1,000 $217 Assembling $203,640 67,880 $3 Inspection $280,800 1,200 $234

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