Jacob Industries produces two electronic decoders, A and B Decoder A is more sophisticated and requires more programming and testing than does Decoder B Because of these product differences, the company wants to use activity based costing to allocate overhead costs It has identified four activity centers and their related information as follows Activity Centers Cost Pool Total Cost Driver Repair maintenance on assembly machine $102,000 00 number of units produced Programming Costs 175,300 00 number of program hours Software inspections 18,000 00 number of inspections Product testing 25,000 00 number of tests Total overhead costs $320,300 00 Expected activity for each product follows Number Of Units Number of Programming Hrs Number of Inspections Number of Tests Decoder A 25,000 2,300 210 1,385 Decoder B 32,000 1,750 75 1,250 Totals 57,000 4,050 285 2,635 What is the allocated overhead costs for the Repair Maintenance center for Decoder A 88,250 56 44,736 84 140,482 46 39,862 44

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Question: Jacob Industries produces two electronic decoders, A and B. Decoder A is more sophisticated and requires more programming and testing than does Decoder B. Because

Jacob Industries produces two electronic decoders, A and B. Decoder A is more sophisticated and requires more programming and testing than does Decoder B. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity centers and their related information as follows.

Activity Centers	Cost Pool Total	Cost Driver
Repair & maintenance on assembly machine	$102,000.00	number of units produced
Programming Costs	175,300.00	number of program hours
Software inspections	18,000.00	number of inspections
Product testing	25,000.00	number of tests
Total overhead costs	$320,300.00

Expected activity for each product follows:

	Number Of Units	Number of Programming Hrs.	Number of Inspections	Number of Tests
Decoder A	25,000	2,300	210	1,385
Decoder B	32,000	1,750	75	1,250
Totals	57,000	4,050	285	2,635

What is the allocated overhead costs for the Repair & Maintenance center for Decoder A?

88,250.56 44,736.84 140,482.46 39,862.44

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