Campbell 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:

Production of $710$ sets of cutting shears, one of the company's $20$ products, took $140$ labor hours and $10$ setups and consumed $11$

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 $710$ units are produced. If direct product costs are $$170$ and the product is priced at $25$ percent above cost for what

price would the product sell under each allocation system?

Complete this question by entering your answers in the tabs below.

Req A and $B$

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?

Note: Round intermediate calculations to $2$ decimal places. Round your final answers to the nearest whole dollar amount.

a$.$ Allocated cost

b$.$ Allocated cost