Fanning 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 a. Compute the overhead rate for each activity pool. b. Determine the overhead cost allocated to each product. Complete this question by entering your answers in the tabs below. Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.).

1. Fanning 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 a. Compute the overhead rate for each activity pool. b. Determine the
overhead cost allocated to each product. Complete this question by entering your answers in the
tabs below. Compute the overhead rate for each activity pool. (Round your answers to 2 decimal
places.) Complete this question by entering your answers in the tabs below. Determine the
overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.)