Rundle 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 Activities Batch Level $ 36,400 $ 19,800 1,300 labor hours 45 setups Product Level $ 11,000 Percentage of use Facility Level $ 266,000 19,000 units Production of 750 sets of cutting shears, one of the company's 20 products, took 150 labor hours and 9 setups and consumed 18 percent of the product-sustaining activities. Required es 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 750 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? Complete this question by entering your answers in the tabs below. < Prev 3 of 3 Next >