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Munoz Industries produces two electronic decoders, P and Q Decoder Pis more sophisticated and requires more programming and testing than does Decoder Q. Because of
Munoz 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: Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Cost Pool Total $ 99,00 93,200 9,000 7,200 $208,400 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Expected activity for each product follows: Decoder P Decoder o Total Number of Units 19.000 36,000 95,000 Number of Programming Hours 2,200 1,800 4,000 Number of Inspections 198 102 300 Number of Tests 1,300 1.700 3,000 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 Required A WXXE Required 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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