Check my work 29 its Rundle Company produces commercial gardening equipment. Since production is highly automated,...

Transcribed Image Text:

Check my work 29 its Rundle 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 eBook Unit Level Activities Batch Level $ 25,200 $ 25,520 1,200 labor hours 44 setups Product $ 12,0 Percentag Production of 880 sets of cutting shears, one of the company's 20 products, took 130 labor hours and 10 setups and consumed 15 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 880 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? Complete this question by entering your answers in the tabs below. Req A and B Req C Compute the overhead cost per unit for cutting shears first using activity-based costing and thei allocation if 880 units are produced. If direct product costs are $160 and the product is priced at what price would the product sell under each allocation system? Note: Round intermediate calculations and final answers to 2 decimal places. ABC Labor Hours Allocated overhead Direct cost Total cost per unit 0.00 0.00 Desired profit Sales price S 0.00 $ 0.00 < Req A and B Reg C > Check my work 29 its Rundle 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 eBook Unit Level Activities Batch Level $ 25,200 $ 25,520 1,200 labor hours 44 setups Product $ 12,0 Percentag Production of 880 sets of cutting shears, one of the company's 20 products, took 130 labor hours and 10 setups and consumed 15 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 880 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? Complete this question by entering your answers in the tabs below. Req A and B Req C Compute the overhead cost per unit for cutting shears first using activity-based costing and thei allocation if 880 units are produced. If direct product costs are $160 and the product is priced at what price would the product sell under each allocation system? Note: Round intermediate calculations and final answers to 2 decimal places. ABC Labor Hours Allocated overhead Direct cost Total cost per unit 0.00 0.00 Desired profit Sales price S 0.00 $ 0.00 < Req A and B Reg C >