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Finch Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because
Finch 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 Activity Pools Total Cost Driver Repair and maintenance on assembly machine $111,380 Number of units produced Programing cost 96,729 Number of programming hours Software inspections 8,480 Number of inspections Product testing 6,240 Number of tests Total overhead cost $222,660 Expected activity for each product follows: Decoder P Decoder o Total Number of Units 21,000 32,800 53,000 Number of Programming Hours 1,500 2,400 3,990 Number of Inspections 188 112 300 Number of Tests 1,500 1,100 2,600 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 A Required B Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.) Activity Pools Allocation Rate Repair and maintenance on assembly machine Programming cost Software inspections Product testing
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