Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires...

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Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Expected activity for each product follows: Cost Pool Total Cost Driver Number of units produced Number of programming hours Number of inspections $ 112,000 158,500 15,000 19,000 Number of tests $ 304,500 Number of Number of Programming Units Hours Decoder P Decoder Q Total 16,800 2,700 39,200 2,300 56,000 5,000 Number of Number of Inspections 304 Tests 96 1,120 880 400 2,000 Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Decoder P Decoder Q Total Required Direct Labor Hours 6,300 14,700 21,000 a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Complete this question by entering your answers in the tabs below. Required A Required B Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Note: Round intermediate calculations and final answers to 2 decimal places. Cost per unit Method Decoder P Decoder Q ABC Labor hours 5.43 5.43 < Required A Required B > Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Expected activity for each product follows: Cost Pool Total Cost Driver Number of units produced Number of programming hours Number of inspections $ 112,000 158,500 15,000 19,000 Number of tests $ 304,500 Number of Number of Programming Units Hours Decoder P Decoder Q Total 16,800 2,700 39,200 2,300 56,000 5,000 Number of Number of Inspections 304 Tests 96 1,120 880 400 2,000 Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Decoder P Decoder Q Total Required Direct Labor Hours 6,300 14,700 21,000 a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Complete this question by entering your answers in the tabs below. Required A Required B Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Note: Round intermediate calculations and final answers to 2 decimal places. Cost per unit Method Decoder P Decoder Q ABC Labor hours 5.43 5.43 < Required A Required B >