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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
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 Activity PoolS Cost Driver Repair and maintenance on assembly 72,800 Number of units produced machine 103,200 Number of programming Programming cost hours Software inspections 8.000 Number of inspections Product testing 11,900 Number of tests $195,900 Total overhead cost Expected activity for each product follows. Number of Number Number Programming of Number of Units Hours Inspections of Tests 189 Decoder P 22.000 2,300 1,400 2,100 Decoder Q 30,000 2,000 131 Total 52,000 4,300 320 3,500 Required: a. Compute the overhead rate for each activity pool. (Round your answers to2 decimal places.)
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