Saved 5 Adams 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 $ 72,800 $22,950 $ 18,800 $170,000 Cost driver 2,600 labor tirs. 45 setups Percentage of use 17,000 units Production of 740 sets of cutting shears, one of the company's 20 products, took 110 labor hours and 6 setups and consumed 12 percent of the product-sustaining activities Required a. Had the company used lobor 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 ollocation if 740 units are produced. If direct product costs are $120 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. Reg A and B Reg. 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 Overhead costs pools follow Activities Unit Level Batch Eevel Product Level Facility Level Cost $ 72,800 $22,050 $18,000 $170,080 Cost driver 2,680 labor hrs. 45 setups Percentage of use 17,000 units Production of 740 sets of cutting shears, one of the company's 20 products, took 110 labor hours and 6 setups and percent of the product-sustaining activities. Required ook a. Had the company used labor hours as a companywide allocation base, how much overhead would it have alloca 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 lab allocation if 740 units are produced. If direct product costs are $120 and the product is priced at 25 percent abov price would the product sell under each allocation system? int onces Complete this question by entering your answers in the tabs below. Reg A and B Reg C Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours allocation if 740 units are produced. If direct product costs are $120 and the product is priced at 25 percent above cost what price would the product sell under each allocation system? (Round intermediate calculations and final answers to 2 decimal places.) Show le ABC Labor Hrs Allocated overhead Direct cost Total cost per unit Desired profit Sales price 0.00 0.00 S 0.00 $ 0.00
