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: Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Expected activity for each product follows: Cost Pool Total Cost Driver Number of units produced Number of programming hours $ 132,000 164,000 24,000 28,000 Number of inspections Number of tests $ 348,000 Number of Number of Programming Number of Number of Units Hours Inspections Tests Decoder P Decoder Q Total 19,800 2,300 380 2,800 46,200 66,000 1,800 4,100 120 2,200 500 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 Hours Decoder P 7,200 Decoder Q 16,800 Total 24,000