Smithton produces a variety of products in its manufacturing plant. The costs and cost drivers associated with four activity cost pools are given below: Cost Unit Level $117,600 Batch Level Product Level $91,000 $28,600 Facility Level $154,800 51,600 units Cost Driver 5,600 labor hours 260 setups % of use Production of 1,000 units of a widget required 360 labor hours, two setups, and consumed 15% of the product sustaining activities. You have been tasked with considering different cost allocation options and then preparing a write up for your supervisor. Required: 1. Assume the company uses labor hours as a company-wide allocation base. How much total overhead would be allocated to production of the 1,000 widgets? 2. Assume the company uses activity-based-costing. How much total overhead would be allocated to production of the 1,000 widgets? 3. Explain the difference between using a single company-wide allocation base versus activity- based costing. What are pros and cons of each? Which method would you suggest to your supervisor and why?