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:

Production of $880$ sets of cutting shears, one of the company's $20$ products, took $220$ labor hours and $10$ setups

and consumed $14$ 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 $880$ units are produced. If direct product costs are $$170$ and the product is priced at

$25$ 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.

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?

Note: Round intermediate calculations to $2$ decimal places. Round your final answers to the nearest whole dollar amount.

a$.$ Allocated cost

b$.$ Allocated cost