• Don't use ai and explain in detail with formula and calculations

Rundle Company produces commercial gardening equipment. Since production is highlyautomated, the company allocates its overhead costs to product lines using activity-basedcosting. The costs and cost drivers associated with the four overhead activity cost poolsfollow:ActivitiesUnit LevelBatch LevelProductCost$ 25, 200$ 25, 520$ 12,0Cost driver1, 200 labor hours44 setupsPercentagProduction of 880 sets of cutting shears, one of the company's 20 products, took 130 laborhours and 10 setups and consumed 15 percent of the product-sustaining activities.Requireda. Had the company used labor hours as a companywide allocation base, how muchoverhead 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 costingand then using direct labor hours for allocation if 880 units are produced. If directproduct costs are $160 and the product is priced at 35 percent above cost for what pricewould the product sell under each allocation system?Complete this question by entering your answers in the tabs below.Req A and BReg CHad the company used labor hours as a companywide allocation base, how much overhead woulcutting shears? How much overhead is allocated to the cutting shears using activity-based costiNote: Round intermediate calculations to 2 decimal places. Round your final answers to the neara. Allocated costD. Allocated cosReg C >