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:

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:

Required

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

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

Cost Pool Total $104,500 Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Cost Driver Number of units produced 143,500 Number of programming hours 14,000 Number of inspections 18,000 Number of tests $280,000 Expected activity for each product follows: Number of Number of Programming Decoder P Decoder o Total Units 16,500 38,500 55,000 Hours 1,500 1,000 2,500 Number of Inspections 304 96 400 Number of Tests 2,240 1,760 4,000 Decoder P Decoder Q Total Direct Labor Hours 6,000 14,000 20,000 Required ARequired B Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base (Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount.) Allocated Cost Decoder P Decoder Q Total Required A Required B Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. (Round intermediate calculations and final answers to 2 decimal places.) Cost per unit Method ABC Labor hours Decoder P Decoder