Perez 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 $ $54,600$ $ $14,880$ $ $15,000$ $ $165,000$

Cost driver $2,600$ labor hours $31$ setups Percentage of use $11,000$ units

Production of $800$ sets of cutting shears, one of the company$$s $20$ products, took $270$ labor hours and $8$ setups and consumed $19$ percent of the product$-$sustaining activities.

Required

Question A: Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears?

Question B: How much overhead is allocated to the cutting shears using activity$-$based costing?

Question C: Compute the overhead cost per unit for cutting shears first using activity$-$based costing and then using direct labor hours for allocation if $800$ units are produced. If direct product costs are $$130$ and the product is priced at $35$ percent above cost for what price would the product sell under each allocation system?