Roebuck 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. 

Expected activity for each product follows. 

Required

a. Compute the overhead rate for each activity pool.

b. Determine the overhead cost allocated to each product. 

Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Cost Pool Total Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests $ 50,000 84,000 6,000 8,000 $148,000