My question is on the following use the information in Exercise 5-6a( i will post this below ) to complete the following requirements. Assume that before shifting to activity based costing Snowden Industries allsocated all overhead costs based on direct labor hours. Direct labor hours per to the two decodes follows Decoder P 8000 Decoder Q 16,000Total dircet hours is 24,000. Answer the following Compare the amount of overhead cost allocated to each type of decoder when using direct labors as the alloacation base Determine the coste per unit for overhead when using direct labor hours as the allocation base and when using ABC Round your fingers to two deceimal points Explain why per unit overhead cost is lower for the high volume product when using ABC .

5-6 Not asking this one you need this to solve the above question. Snowden Industries two elctronic decodes Pand Q Decoder P is more sophisicated and requires more programing and testing the does Decoder Q. Because of these products differences the company wants to use activity based costing sto allocate overhead costs it has identified four activities

Activity Pool Cost Pool Tool Cost driver

Repair and maintance of assembly machine . 104,000 Number of units produced

Program cost 168,000 Number of programming hours

Software inspections 12,000 Number of inspections

Product testing 16,000 Number of tests

Total Overheade 300,000

Expected activity for each product

Number of units Number of programming hours Number of inspections Number of tests

Decoder p 16,000 2000 190 1400

Decoder Q 36,000 1500 60 1100

Total 52,000 3500 250 2500