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 PoolsCost Pool TotalCost DriverRepair and maintenance on assembly machine$ $150,000$Number of units producedProgramming cost$209,000$Number of programming hoursSoftware inspections$15,000$Number of inspectionsProduct testing$18,000$Number of testsTotal overhead cost$ $392,000$

Expected activity for each product follows:

$$Number of UnitsNumber of Programming HoursNumber of InspectionsNumber of TestsDecoder P$18,0002,7003041,680$Decoder Q$42,0002,300961,320$Total$60,0005,0004003,000$

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:

$$Direct Labor HoursDecoder P$8,400$Decoder Q$19,600$Total$28,000$

Required

Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base.

Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC.