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: Expected activity for each product follows: Required Compute the overhead rate for each activity pool. Determine the overhead cost allocated to each product. Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.) Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.) Activity Pools Cost Pool Total Cost Driver Repair and Number of units maintenance on $ 78,000 produced assembly machine Number of Programming cost 97,890 programming hours Software Number of 6,440 inspections inspections Product testing 11,840 Number of tests Total overhead $ 194,170 cost.

1. 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:
Expected activity for each product follows:
Required
Compute the overhead rate for each activity pool.
Determine the overhead cost allocated to each product.
Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.)
Determine the overhead cost allocated to each product. (Round intermediate calculations to 2
decimal places.)
Activity Pools Cost Pool Total Cost Driver
Repair and
maintenance on
assembly machine
$ 78,000
Number of units
produced
Programming cost 97,890
Number of
programming
hours
Software
inspections
6,440
Number of
inspections
Product testing 11,840 Number of tests
Total overhead
cost
$ 194,170