Check my work 7 Stuart 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: 2 paints Skipped Activities Batch Level $20,500 50 setups Unit Level $ 24,000 1,000 labor hrs. Cost Cost driver Product Level $20,000 Percentage of use Facility Level $234,800 13,000 units ebook Production of 830 sets of cutting shears, one of the company's 20 products, took 120 labor hours and 6 setups and consumed 13 percent of the product-sustaining activities. Required Print References a. Had the company used labor hours as a company wide 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 830 units are produced. If direct product costs are $140 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. Required A and B 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? (Round intermediate calculations to 2 decimal places. Round your final answers to the nearest whale dollar amount.) a. Allocated cost b. Allocated cost Required A and Required C > Check my work 7 Required a. Had the company used labor hours as a company wide 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 830 units are produced. If direct product costs are $140 and the product is priced at 25 percent above cost for what price would the product sell under each allocation system? points Skipped Complete this question by entering your answers in the tabs below. eBook Required A and B Required Print References Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 830 units are produced. If direct product costs are $140 and the product is priced at 25 percent above cost for what price would the product sell under each allocation system? (Round intermediate calculations and final answers to 2 decimal places.) Show less ABC Labor Hrs Allocated overhead Direct cost Total cost per unit Desired profit Sales price
