Use the information in Exercise 5-6A to complete the following requirements. Assume that before shifting to activity based costing, Snowden Industries allocated all overhead costs based on direct Inbor hours. Direct labor data pertaining to the two decoders follow. Direct Labor Hours Decoder P 8,000 Decoder o 16,000 Total 24.000 Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as Page 229 the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC Round your figures to two decimal points. Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as Pare 229 the allocation base, b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC. Round your figures to two decimal points. e. Explain why the per-unit overhead cost is lower for the high-volume product when using ABC. Cost Pool Total Cost Driver $ 104,000 Number of units produced 168,000 Number of programming hours Activity Pools Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total-overhead cost 12.000 Number of inspections 16,000 Number of tests $300,000 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 a 1,100 36.000 1,500 60 Total 52.000 3,500 250 2.500