Exercise 5-6A Computing overhead rates based on different cost drivers LO 5-2, 5-3 Fanning 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: Cost Pool Total $119,700 98, 400 8,060 8,960 $235, 120 Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Total overhead cost Expec activity for oduct follows: Number of Number of Units Programming Number of Number of Inspections 194 Hours Tests Decoder P 1, 800 2, 200 1,500 1,300 22,000 Decoder Q 35, 000 116 57, 000 Total 4,000 310 2, 800 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 B Required A 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 B Required A 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 Required A Required B