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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-
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