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CoursHeroTranscribedText: Snowden Industries produces two electronic decoders. P and D. Decoder P is more sophisticated and requires more programming and testing than does Decoder G. Because of these product differences, the company wants to use activitybased costing to allocate overhead costs. It has identied four activity pools. Relevant information follows: Activity Pools Cost Pool Cost Total Driver Repair and maintenance on assembly 5 105,600 Number of units produced machine Programming cost 143,400 Number of programming hours Software inspections 11,000 Number of inspections Product testing 15,000 Number of tests Total overhead cost 5 275,000 Expected activity for each product follows: Number Number of Number of Number of Units Programming Inspections of Tests Hours Decoder 19,800 2,000 190 1,400 P Decoder 46,200 1,000 60 1,100 Q Total 66,000 3,000 250 2,500 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: Direct Labor Hours Decoder P 6,600 Decoder Q 15,400 Total 22,000 Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC

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