tuart 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 $ $47,500$ $ $20,350$ $ $19,000$ $ $156,000$

Cost driver $1,900$ labor hours $37$ setups Percentage of use $12,000$ units

Production of $830$ sets of cutting shears, one of the company$$s $20$ products, took $120$ labor hours and $10$ setups and consumed $11$ percent of the product$-$sustaining activities.

Required

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?

Compute the overhead cost per unit for cutting shears first using activity$-$based costing and then using direct labor hours for allocation if $830$ units are produced. If direct product costs are $$160$ and the product is priced at $35$ percent above cost for what price would the product sell under each allocation system?