Question: Exercise 5-7A (Algo) Comparing an ABC system with a traditional costing system LO 51,53 Snowden Industries produces two electronic decoders. P and Q. Decoder P

 Exercise 5-7A (Algo) Comparing an ABC system with a traditional costing
system LO 51,53 Snowden Industries produces two electronic decoders. P and Q.
Decoder P is more sophisticated and requires more pros and testing than
does Decoder Q. Because of these product differences, the company wants to

Exercise 5-7A (Algo) Comparing an ABC system with a traditional costing system LO 51,53 Snowden Industries produces two electronic decoders. P and Q. Decoder P is more sophisticated and requires more pros and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costine overhead costs. It has identified four activity pools. Relevant information follows: Expected activity for each product follows: Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hour Direct labor data pertaining to the two decoders follow: 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. formewite the amniunt of nwerhead rnct allnrated tn earh tune of dernder when weinn direct lahnr hnure ac the allaration hase Complete this question by entering your answers in the tabs below. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocatik (Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. (Roun intermediate calculations and final answers to 2 decimal places.)

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