Use the information in

Exercise $5-6$A to complete the following requirements. 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.

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. Round your figures to two decimal points.

$$Explain why the per$-$unit overhead cost is lower for the high$-$volume product when using ABC.