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Perez 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	$	92,800		Number of units produced
Programming cost		100,000		Number of programming hours
Software inspections		8,500		Number of inspections
Product testing		9,240		Number of tests
Total overhead cost	$	210,540

Expected activity for each product follows:

	Number of Units			Number of Programming Hours			Number of Inspections			Number of Tests
Decoder P		21,000			2,100			181			1,300
Decoder Q		37,000			1,900			159			2,000
Total		58,000			4,000			340			3,300

Required

1. Compute the overhead rate for each activity pool.

   	Activity Pools Allocation Rate Repair and maintenance on assembly machine Programming cost Software inspections Product testing

2. Determine the overhead cost allocated to each product.

   	Total Allocated Cost Decoder P Decoder Q

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