IL Exercise 5-7A (Algo) Comparing an ABC system with a traditional costing system LO 5-1, 5-3 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: Decoder P Decoder 0 -Total Number of Number of Programming Units Hours 19.896 46.266 66.883 Decoder P |Decoder 0 1,800 4,180 Direct Labor Hours Cost Pool Total $ 132,000 164,000 28,000 $ 348,000 Number of Inspections 380 120 500 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Number of Tests 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: 2. 200 Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. p. 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.

Exerclse 5-7A (Algo) Comparing an ABC system with a traditional costing system LO 5-1, 5-3 Snowden industres 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 pverhead costs. It has identfied four activity pools. Relevant information follows: Expected actinty for each product follows: B. sume that before shiting to activity-based costing. Snowden Industriea alocated all overhead costa based on difoct labor hours. Pectabor dot: pertaining to the two decoders foilow Beculed Complete this question by entering your answers in the tabs below. a. Compute the amount of overhead cost allocated to b. Determine the cost per unit for overhead when using Complete this question by entering your answers Determine the cost per unit for overhead when using direct Note: Round intermediate calculations and final answers to Exerclse 5-7A (Algo) Comparing an ABC system with a traditional costir Snowden industries produces two electronic decoders, P and Q Decoder P is more sophiste end testing than does Decoder Q. Because of these product differencos, the company wants pvermead costs. 7 has idenutlod four activity pools. Relevant information follows: Elosctud activity for each produst folions. pirect lobor estar pertaning to the two desoserv for in? Frouiced Complete this question by entering your answers in the tabs below