Rooney 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: Cost Cost driver Unit Level $ 57,500 2,300 labor hrs. Activities Batch Level $15,640 34 setups Product Level $17,000 Percentage of use Facility Level $238,000 17,000 units Production of 780 sets of cutting shears, one of the company's 20 products, took 230 labor hours and 7 setups and consumed 18 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 780 units are produced. If direct product costs are $110 and the product is priced at 35 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. Req A and B Req C 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 whole dollar amount.) a. Allocated cost b. Allocated cost Rooney 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: Unit Level $ 57,500 2,300 labor hrs. Activities Batch Level $15,640 Product Level $17,000 Percentage of use Cost Cost driver 34 setups Facility Level $238,000 17,000 units Production of 780 sets of cutting shears, one of the company's 20 products, took 230 labor hours and 7 setups and consumed 18 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 780 units are produced. If direct product costs are $110 and the product is priced at 35 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. Req A and B Req C Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. If direct product costs are $110 and the product is priced at 35 percent above cost for what price would the product sell under each allocation system? (Round intermediate calculations and final answers to 2 decimal places.) ABC Labor Hrs Allocated overhead Direct cost Total cost per unit 0.00 0.00 Desired profit Sales price $ 0.00 $ 0.00 Show less