Business, 02.03.2020 19:21 reearamrup27

Jordan 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 $ 84,800 Number of units produced Programming cost 107,070 Number of programming hours Software inspections 5,600 Number of inspections Product testing 9,880 Number of tests Total overhead cost $ 207,350 Expected activity for each product follows: Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 23,000 2,100 200 1,400 Decoder Q 30,000 2,200 80 1,200 Total 53,000 4,300 280 2,600 Required Compute the overhead rate for each activity pool. Determine the overhead cost allocated to each product.

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Jordan Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and req...

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