Cullumber Inc. manufactures two products: car wheels and
truck wheels. To determine the amount of overhead to assign to each
product line, the controller, Robert Williams, has
developed the following information:
Cullumber Inc Manufactures Two Products Car Wheels And Truck Wheels To Determine The Amount Of Overhead To Assign To 1 (207.83 KiB) Viewed 55 times
Car Truck Estimated wheels produced 45,000 18,000 Direct labour hours per wheel 8 Total estimated overhead costs for the two product lines are $1,620,000. (a) Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. Car wheels $ Truck wheels $ Total overhead $
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