08 Snowden 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 Coat Pool Total $ 97,500 130,500 10,000 14,000 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Total overhead cost Expected activity for each product follows: $252,000 Number of Number of Programming Unita Decoder P Decoder Q Total 19,500 Bours 1,500 Number of Inspections 152 Number of Tests 1,120 45,500 1,000 48 8801 65,000 2,500 200 2,000 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 6,300 Decoder Q 14,700 Total 21,000