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.

Exercise 17-4 Altex Inc. manufactures two products

Calculate overhead rate. (Round answer to 2 decimal places, e. g. $12.25.)
Overhead rate
$

per direct labor hour
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Exercise 17-4 Altex Inc. manufactures two products

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
$