Jordan Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and...

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Accounting

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Jordan 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 Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Cost Pool Total $ 71,400 84,600 7,250 9,100 $172,350 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Expected activity for each product follows: Number of Units 21,000 30,000 51,000 Decoder P Decoder o Total Number of Programming Hours 1,600 2,000 3,600 Number of Inspections 184 106 Number of Tests 1,600 1,000 2,600 290 Required a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product. Complete this question by entering your answers in the tabs below. Required A Required B Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.) Activity Pools Allocation Rate Repair and maintenance on assembly machine Programming cost Software inspections Product testing Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.) Total Allocated Cost Decoder P Decoder

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