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	Cost Pool Total	Cost Driver
Repair and maintenance on assembly machine	$ 97,500	Number of units produced
Programming cost	130,500	Number of programming hours
Software inspections	10,000	Number of inspections
Product testing	14,000	Number of tests
Total overhead cost	$ 252,000

Expected activity for each product follows:

	Number of Units	Number of Programming Hours	Number of Inspections	Number of Tests
Decoder P	19,500	1,500	152	1,120
Decoder Q	45,500	1,000	48	880
Total	65,000	2,500	200	2,000

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	6,300
Decoder Q	14,700
Total	21,000

Required

Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base.

Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC.