Exercise 5-6A Computing overhead rates based on different cost drivers LO 5-2,5-3 Munoz 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 Cost Pool Total $ 74,100 84,240 7,000 10,540 $175,880 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Expected activity for each product follows: Number of Units 18,000 39,000 57,000 Decoder P Decoder o Total Number of Programming Hours 2,200 1,400 3,600 Number of Inspections 186 Number of Tests 1,200 2,200 3,400 94 280 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product. Required A Required B Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.) Allocation Rate Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Required A Required B Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.) Total Allocated Cost Decoder P Decoder