Exercise 5-6A Computing overhead rates based on different cost drivers 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: Cost Pool Total Cost Driver Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost $104,000 168,000 12,000 16,000 $300,000 Number of units produced Number of programming hours Number of inspections Number of tests Expected activity for each product follows: Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P Decoder Total 16,000 36,000 52,000 2,000 1,500 3,500 190 60 1,400 1,100 2,500 250 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product. Exercise 5-7A Comari