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: Activities Unit Level Batch Level Product Level Facility Level Cost $ 33,000 $ 23,000 $ 18,000 $ 192,000 Cost driver 1,500 labor hours 46 setups Percentage of use 16,000 units Production of 870 sets of cutting shears, one of the companys 20 products, took 260 labor hours and 9 setups and consumed 11 percent of the product-sustaining activities. Required 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? Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 870 units are produced. If direct product costs are $120 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system?