Terry Industries produces two electronic decoders, P and Q. Decoder

Terry 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.

Terry Industries produces two electronic decoders, P and Q. Decoder

Expected activity for each product follows.

Terry Industries produces two electronic decoders, P and Q. Decoder

Required
a. Compute the overhead rate for each activity pool.
b. Determine the overhead cost allocated to eachproduct.

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