Exercise 5-8A (Algo) Allocating costs with different cost drivers LO 5-1, 5-2, 5-3 Walton 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 720 sets of cutting shears, one of the company's 20 products, took 300 labor hours and 7 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 720 units are produced. If direct product costs are $120 and the product is priced at 25 percent above cost for what price would the product sell under each allocation system