Calculate overhead cost assigned to the car wheels

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Reference no: EM132514577

Alonzo inc. manfactures two products: car wheels and truck wheels.

To determine the amount of overhead to assign to each product line, the controller, Yuyu ortega has developed the following information:

Estimated wheels produced: car- 40,000 truck- 10000

Direct labour hours per wheel car-2 truck 6

Total estimated overhead costs for the two product lines are$840,000.

Question 1: Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs.

Car wheel-

Truck wheel-

Total overhead-

Reference no: EM132514577

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