Stuart Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead...

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Stuart 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 $ 33,600 $ 23,780 1,200 labor hours 41 setups Product Level Facility Level $ 16,000 Percentage of use $ 221,000 17,000 units Production of 850 sets of cutting shears, one of the company's 20 products, took 120 labor hours and 10 setups and consumed 12 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 850 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? Stuart 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 $ 33,600 $ 23,780 1,200 labor hours 41 setups Product Level Facility Level $ 16,000 Percentage of use $ 221,000 17,000 units Production of 850 sets of cutting shears, one of the company's 20 products, took 120 labor hours and 10 setups and consumed 12 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 850 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?