Fanning 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 $820$ sets of cutting shears, one of the company's $20$ products, took $300$ labor hours and $9$ setups and consumed $15$ 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 $820$ units are produced. If direct product costs are $$150$ and the product is priced at $25$ percent above cost for what price would the product sell under each allocation system?