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Expected activity for each product follows. Assume that before shifting to activity-based costing, Terry Industries allocated all overhead costs based on direct labor hours. Direct
Expected activity for each product follows. 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. 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 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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