Exercise 5-6A Computing overhead rates based on different cost drivers Snowden Industries produces two clectronic decoders, Pand Q. Decoder Pis 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. Cost Pool Total Cost Driver Activity Pools Repair and maintenance on assembly machine Programming cost $ 104,000 Number of units produced 168,000 Number of programming hours Software inspections 12.000 Number of inspections Product testing 16.000 Number of tests Total overhead cost $300.000 Expected activity for each product follows. Number of Units Number of Programming Hours Number of inspections Number of Tests Decoder P 16,000 2,000 190 1400 Software inspections 12.000 Number of inspections 16,000 Number of tests Product testing Total overhead cost $300,000 Expected activity for each product follows. Number of Units Number of Programming Hours Number of Inspections Number of Tests 16,000 2.000 Decoder P 190 1.400 60 36,000 1,500 Decoder 1100 52.000 Total 3,500 250 2,500 Required a. Compute the overhead rate for each activity pool b. Determine the overhead cost allocated to each product