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 $ 104,500 Number of units produced Programming cost 97,110 Number of programming hours Software inspections 6,750 Number of inspections Product testing 11,840 Number of tests Total overhead cost $ 220,200 Expected activity for each product follows. Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 22,000 1,900 188 1,100 Decoder Q 33,000 2,000 82 2,100 Total 55,000 3,900 270 3,200 Required: a. Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.) b. Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.)

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. Cost Pool Total Cost Driver Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing $104,500 97,110 6,750 11,840 Number of units produced Number of programming hours Number of inspections Number of tests Total overhead cost $220,200 Expected activity for each product follows of Units Decoder P 22,000 Decoder Q33,000 Number of Number Programming Number Hours 1,900 2,000 of Inspections 188 82 Number of Tests 1,100 2,100 Total 55,000 3,900 270 3,200 Required 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