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Question(s) / Instruction(s):

Alonzo Inc. manufactures two products: car and truck wheels. To determine the amount of overhead to assign to each product line, the controller, YuYu Ortega, 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 $700,000.
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Required:
1.      Compute the overhead cost assigned to the car and truck wheels, assuming that direct labor hours are used to allocate overhead costs.
2.    Compute the activity-based overhead rates for these three cost pools.
3.    Compute the cost that is assigned to the car and truck product lines using an activity-based costing system

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