E17-4 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.
Car | Truck | |
Estimated wheels produced | 40,000 | 10,000 |
Direct labor hours per wheel | 1 | 3 |
Total estimated overhead costs for the two product lines are $770,000.
Instructions
(a) Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.
(b) 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.
Compute the activity-based overhead rates for these three cost pools.
(c) 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.
(d) What do you believe Hermann should do?
E17-4 Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of...
E17.4 (LU 1, 2) Altex Inc. manufactures two products: car wheels and truck wheels. lo determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Assign overhead using traditional costing and ABC. Excel Car Truck Estimated wheels produced 40,000 10,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $770,000. Instructions a. Compute the overhead cost assigned to the car wheels and 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 Direct labor hours per wheel 39,000 11,000 1 3 Total estimated overhead costs for the two product lines are $835,200. ✓ Your answer is correct. Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $ 11.60 per direct labor hour...
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 information controller, Robert Hermann, has developed the following Car Truck Estimated wheels produced Direct labor hours per wheel 35,500 15,000 Total estimated overhead costs for the two product lines are $825,000 Calculate overhead rate. (Round answer to 2 decimal places, e-g. 12.25.) Overhead rate per direct labor hour Compute the overhead cost assigned to the...
please solve in excel/table format. thank you. E17.4 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. Car 40,000 Truck 10,000 Estimated wheels produced Direct labor hours per wheel Total estimated overhead costs for the two product lines are $770,000. Instructions (a) Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor...
a2 upport 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 40,000 9,000 Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $777,200. (a1) ✓ Your answer is correct. Calculate overhead rate. (Round answer to 2 decimal places, .g. 12.25.) Overhead rate $ 116 per...
Question 5 --/1 View Policies Current Attempt in Progress 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 Direct labor hours per wheel 40,000 10,000 1 3 Total estimated overhead costs for the two product lines are $742,000. Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $ per...
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 40,000 9,000 Direct labor hours per wheel 1 3 Total estimated overhead costs for the two product lines are $777,200. (at) Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rate $ per direct labor hour
Exercise 4-4-1-a2, b-c (Video) 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 Estimated wheels produced Direct labor hours per wheel Car Truck 36,000 11,000 1 3 Total estimated overhead costs for the two product lines are $731,400 Calculate overhead rate. (Round answer to 2 decimal places,.. 12.25.) Overhead rate per direct labor hour $ Compute the overhead...
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. Estimated Use of Cost Drivers per Product Car Truck Number of setups Direct labor hours 200 40,000 100 800 27,000 1.100 Number of inspections Car Wheels Truck Wheels Setting up machines $ Assembling Inspection Total cost assigned Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to...
Question 12 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 Estimated wheels produced 36,000 Truck 11,000 3 Direct labor hours per wheel 1 Total estimated overhead costs for the two product lines are $731,400. (a1) Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rates per direct labor hour Question 11 EcoFabrics has...