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?