Exercise 5-8A (Algo) Allocating costs with different cost drivers LO 5-1, 5-2, 5-3 3.33 Campbell Company produces commercial gardening equipment. Since production is highly automated, the company allocates its points 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 $ 24,000 $ 21, 930 $ 16, 000 $ 154, 000 Cost driver 1, 200 labor hours 43 setups Percentage of use 14,000 units Production of 840 sets of cutting shears, one of the company's 20 products, took 280 labor hours and 9 setups and consumed 16 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 840 units are produced. If direct product costs are $110 and the product is priced at 25 percent above cost for what price would the product sell under each allocation system? x Answer is complete but not entirely correct