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Gibson Industries produces two electronic decoders, P and Q. Decoder Pis more sophisticated and requires more programming and testing than does Decoder Q. Because of

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Gibson Industries produces two electronic decoders, P and Q. Decoder Pis 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 $102,600 Number of units produced Programming cost 97,500 Number of programming hours Software inspections 7,040 Number of inspections Product testing 12,300 Number of tests Total overhead cost $219,440 Expected activity for each product follows: Decoder P Decoder o Total Number of Units 18,000 39, eee 57.000 Number of Programming Hours 1,900 2,000 3,900 Number of Inspections 184 136 320 Number of Tests 1,300 1,700 3,000 320 Total 57,000 3,900 3,000 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.) Allocation Rate Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Decoder P Decoder o Total Number of Units 18,000 39,000 57,000 Programming Hours 1,900 2,000 3,900 Number of Inspections 184 136 320 Number of Tests 1,300 1,700 3,000 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 Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.) Total Allocated Cost Decoder P Decoder

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