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Exercise 5-7A (Algo) Comparing an ABC system with a traditional costing system LO 5-1,5-3 Snowden 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 $136,800 Number of units produced Programming cost 143,200 Number of programming hours Software inspections 27,000 Number of inspections Product testing 31,000 Number of tests Total overhead cost $338,000 Expected activity for each product follows: Number of Number of Programning Units Hours Decoder P 17,100 2,200 Decoder o 39,900 1,800 Total 57,000 4,000 Number of Inspections 456 144 600 Number of Tests 2,800 2,200 5,000 Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Direct Labor Hurs Decoder P 7,800 Decoder o 18,200 Total 26,000 Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC Complete this question by entering your answers in the tabs below. Required A Required B 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. Round your answers to the nearest whole dollar amount.) Allocated Cost Decoder P Decoder Q Total Required B Complete this question by entering your answers in the tabs below. Required A Requirede 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.) Cost per unit Method Decoder P Decoder ABC Labor hours