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4 points Skipped Jordan Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based

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4 points Skipped Jordan Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Activities Unit Level Natch Level Product Level Pacility Level Cost $ 32,500 $24,960 $ 20,000 $240,000 Cost driver 1,300 Labor hra. 48 setup Percentage of use 20,000 units Production of 770 sets of cutting shears, one of the company's 20 products, took 120 tabor hours and 9 setups and consumed 13 percent of the product-sustaining activities. Required a. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? b. How much overhead is allocated to the cutting shears using activity based costing? c. Compute the overhead cost per unit for cutting shears first using activity based costing and then using direct labor hours for allocation if 770 units are produced. If direct product costs are $190 and the product is priced at 25 percent above cost for what price would the product sell under each allocation system? BOOK References Complete this question by entering your answers in the tabs below. 3 Check my work shears b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity based costing and then using direct labor hours for allocation if 770 units are produced. If direct product costs are $190 and the product is priced at 25 percent above cost for what price would the product sell under each allocation system? 4 points Skloped Complete this question by entering your answers in the tabs below. ook Reg A and B Reqc References Had the company used labor hours as a companywide allocation base, how much overhead Would it have allocated to the cutting shears? How much overhead is allocated to the cutting shears using activity-based costing? (Round intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar amount.) a. Allocated cost b. Allocated cost

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