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 45,000 9,000 Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $835,200. (a1)11.60 Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $enter a dollar amount per direct labor hour rounded to 2 decimal places per direct labor hour 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 $enter a dollar amount Truck wheels
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 45,000 9,000 Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $835,200. (a1)11.60 Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $enter a dollar amount per direct labor hour rounded to 2 decimal places per direct labor hour 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 $enter a dollar amount Truck wheels
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Total estimated overhead costs for the two product lines are $835,200.
|
Car
|
Truck
|
|||
|---|---|---|---|---|
| Estimated wheels produced | 45,000 | 9,000 | ||
| Direct labor hours per wheel | 1 | 3 |
Total estimated overhead costs for the two product lines are $835,200.
(a1)11.60
Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)
| Overhead rate |
$enter a dollar amount per direct labor hour rounded to 2 decimal places
|
per direct labor hour |
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 |
$enter a dollar amount
|
|
|---|---|---|
| Truck wheels |
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