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Benson 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	$	87,000		Number of units produced
Programming cost		96,000		Number of programming hours
Software inspections		5,880		Number of inspections
Product testing		9,570		Number of tests
Total overhead cost	$	198,450

Expected activity for each product follows:

	Number of Units			Number of Programming Hours			Number of Inspections			Number of Tests
Decoder P		21,000			2,500			191			1,600
Decoder Q		37,000			1,500			89			1,700
Total		58,000			4,000			280			3,300

Required

1. Compute the overhead rate for each activity pool.

2. Determine the overhead cost allocated to each product.

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

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

	Activity Pools Allocation Rate Repair and maintenance on assembly machine Programming cost Software inspections Product testing

	Total Allocated Cost Decoder P Decoder Q

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