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 Cost Pool Cost Driver Total $117,500 150,500 Number of units produced Number of programming hours 20,000 Number of inspections 24,000 $312,000 Number of tests Expected activity for each product follows: Number of Number of Programming Number of Number of Units Hours Inspections Tests Decoder P Decoder Q Total 14,100 2,000 304 1,680 32,900 1,500 96 1,320 47,000 3,500 400 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: Decoder P Decoder Q Total Direct Labor Hours 7,800 18,200 26,000 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.