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 $ 150,000 209,000 15,000 18,000 Number of inspections Number of tests $ 392,000 Number of Number of Programming Number of Number of Units Hours Inspections Tests Decoder P 18,000 2,700 304 1,680 Decoder Q Total 42,000 2,300 96 1,320 60,000 5,000 400 3,000 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 Decoder P Decoder Q Hours 8,400 19,600 28,000 Total 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.