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Snowden Industries produces two electronic decoders, P and Q . Decoder P is more sophisticated and requires more programming and testing than does Decoder Q

Snowden 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:
\table[[Activity Pools,\table[[Cost Pool],[Total]],Cost Driver],[Repair and maintenance on assembly machine,$99,000,Number of units produced],[Programming cost,167,000,Number of programming hours],[Software inspections,21,000,Number of inspections],[Product testing,25,000,Number of tests],[Total overhead cost,$312,000,]]
Expected activity for each product follows:
\table[[,\table[[Number of],[Units]],\table[[Number of],[Programming],[Hours]],\table[[Number of],[Inspections]],\table[[Number of],[Tests]]],[Decoder P,19,800,2,700,266,1,400],[Decoder Q,46,200,2,300,84,1,100],[Total,66,000,5,000,350,2,500]]
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:
\table[[,Direct Labor],[,Hours],[Decoder P,7,200],[Decoder Q,16,800],[Total,24,000]]
Required
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.
Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC.
Note: Round intermediate calculations and final answers to 2 decimal places.
\table[[Cost per unit],[Method,Decoder P,Decoder Q
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