TB Problem 5-163 (Algo) Roadmaster Tires produces a variety... Roadmaster Tires produces a variety of auto and truck tires at its Indianapolis manufacturing plant. The plant is highly automated and uses an activity-based costing system to allocate overhead costs to its various product lines. The costs and cost drivers associated with four activity cost pools are given below: Activities: Cost Cost Driver Unit Level $88,400 5,200 labor hours Batch Level $66,000 220 setups Product Level $30,000 of use Facility Level $153,600 51,200 units Production of 1,000 units of a small tractor tire required 320 labor hours and two setups and consumed 20% of the product sustaining activities. Required: a. Instead of using ABC, suppose the company had used labor hours as a company-wide allocation base. How much total overhead would have been allocated to the tractor tire? b. How much total overhead cost will be allocated to the tire under activity-based costing? c. What price will be quoted if the product is priced at 25% above cost? Compute the price per unit under both the direct labor hours approach and under activity-based costing. The direct manufacturing costs consist of direct material of $22 and direct labor of $32. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. a. Overhead allocated using company-wide allocation base $ 20,000 b. Overhead allocated under activity-based costing $ 15,040) e-1. Selling price per unit under direct labor hours approach o-2. Selling price per unit under activity-based costing