Activities
	Unit Level	Batch Level	Product Level	Facility Level
Cost	$ 180,000		$ 40,000		$ 20,000	$ 240,000
Cost driver	1,500	labor hours	40	setups	Percentage of use	12,000	units

Production of 800 sets of cutting shears, one of the company's 20 products, took 200 labor hours and 6 setups and consumed 15 percent of the product-sustaining activities.

Required

1. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears?
2. How much overhead is allocated to the cutting shears using activity-based costing?
3. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 800 units are produced. If direct product costs are $240 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system?