Stuart 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 Cost Pool Total Cost Driver Repair and maintenance on assembly machine.

Cost Pool Total Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Cost Driver $ 72,800 Number of units produced 92,820 Number of programming hours 6,090 Number of inspections 11,780 Number of tests $183,490 Expected activity for each product follows Number of Number of Programming Decoder P Decoder Total Units 19,000 33,000 52,000 Hours 2,300 1,600 3,900 Number of Inspections 183 107 290 Number of Tests 1,300 1,800 3,100 Required a. Compute the overhead rate for each activity pool b. Determine the overhead cost allocated to each product