80.2K

Verified Solution

Link Copied!

Required A Required B Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.) Total Allocated Cost Decoder P Decoder Q Campbell 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 $ 75,600 92,500 7,590 12,300 $ 187,990 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 18,000 36,000 54,000 Decoder P Decoder o Total Number of Programming Hours 2,400 1,300 3,700 Number of Inspections 183 Number of Tests 1,400 1,600 3,000 147 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.) Allocation Rate Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing

Answer & Explanation Solved by verified expert

See Answer