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Saved 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
Saved 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 $ 85,500 103,740 Cost Driver Number of units produced Number of programming hours 7,820 Number of inspections 11,200 Number of tests $208,260 Expected activity for each product follows. Number of Number of Programming Number of Number of Unite Hours Inspections Tests Decoder p 21,000 2,400 195 1,400 Decoder O 36,000 2,800 145 1,800 Total 57,000 4,200 340 3,200 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 Repair and maintenance on assembly machine Programming cost Software Inspections Product testing Allocation Rate < Prev 2 of 2 Next Franklin 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: Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Cost Pool Total $ 85,500 103,740 7,820 11,200. $208,260 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Expected activity for each product follows: Number of Programming Number of Units Hours Number of Inspections Number of Tests Decoder P 21,000 2,400 195 1,400 Decoder Q 36,000 1,800 145 1,800 Total 57,000 4,200 340 3,200 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 Q Prev 2 of 2 Navt
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