Terry 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 $ 52,000 Number of units produced Programming cost 84,000 Number of programming hours Software inspections 6,000 Number of inspections Product testing 8,000 Number of tests Total overhead cost $ 150,000

Activity Pools

Cost Pool Total

Cost Driver

Repair and maintenance on assembly machine

$

52,000

Number of units produced

Programming cost

84,000

Number of programming hours

Software inspections

6,000

Number of inspections

Product testing

8,000

Number of tests

Total overhead cost

$

150,000

Expected activity for each product follows.

Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 16,000 2,000 190 1,400 Decoder Q 36,000 1,500 60 1,100 Total 52,000 3,500 250 2,500

equired:

a.	Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.)

ALLOCATION RATE

ACTIVITY POOLS DECODER P DECODER Q

REPAIR AND MAINTENANCE ON ASSEMBLY MACHINE

PROGRAMMING COST

SOFTWARE INSPECTIONS

PRODUCT TESTING

b.	Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.) TOTAL ALLOCATED COST DECODER P DECODER Q