Explain and show work #1

Vernon 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 Activity Pools Repair and maintenance on assembly machine 81,000 Number of units produced Programming cost Software inspections Product testing Total overhead cost Cost Driver 99,200 Number of programming hours 7,540 Number of inspections 12,160 Number of tests $199,900 Expected activity for each product follows Number of Number of Programming Decoder P Decoder Q Total Units 22,000 32,000 54,000 Hours 1,500 2,500 4,000 Number of Inspections 188 102 290 Number of Tests 1,400 1,800 3,200 Required a. Compute the overhead rate for each activity pool b. Determine the overhead cost allocated to each product