Snowden 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 Repair and maintenance on assembly machine Programming cost Software inspections Product testing Total overhead cost Expected activity for each product follows: Decoder P Decoder Q Total Number of Units 16,800 39,200 56,000 Decoder P Decoder Q Total Direct Labor Hours Number of Programming Hours 2,100 1,700 3,800 6,600 15,400 22,000 Cost Pool Total $ 128,800 167,200 26,000 30,000 $ 352,000 Cost Driver Number of units produced Number of programming hours Number of inspections Number of tests Number of Number of Inspections 494 156 650 Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Tests 1,400 1,100 2,500 Required a. Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. b. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC.