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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.

Activity Pools	Cost Pool Total			Cost Driver
Repair and maintenance on assembly machine	$	83,200		Number of units produced
Programming cost		91,260		Number of programming hours
Software inspections		6,090		Number of inspections
Product testing		13,600		Number of tests
Total overhead cost	$	194,150

Expected activity for each product follows.

	Number of Units		Number of Programming Hours		Number of Inspections		Number of Tests
Decoder P	17,000		1,500		194		1,300
Decoder Q	35,000		2,400		96		2,100
Total	52,000		3,900		290		3,400

Assume that before shifting to activity-based costing, Terry Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow.

	Direct Labor Hours
Decoder P	11,000
Decoder Q	32,000
Total	43,000

Required:

a.	Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. (Round intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

b.	Determine the cost per unit for overhead for each type of decoder when using direct labor hours as the allocation base and when using ABC. (Round intermediate calculations and final answers to 2 decimal places.)

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