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Thornton 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 $ 62,400 93,990 7,840 8,840 $173,070 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Expected activity for each product follows: Decoder P Decoder Q Number of Units 22,000 30,000 52,000 Number of Programming Hours 1,600 2,300 3,900 Number of Inspections 193 87 280 Number of Tests 1,500 1,900 3,400 Total 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 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

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