Question: I need the solution to this problem. 6 2 points Unit Level cBook Stuart Company produces commercial gardening equipment. Since production is highly automated, the
6 2 points Unit Level cBook Stuart 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 Batch Leve? Product Level Eacility Level Cost $ 50,400 $14.400 $15, Bee 5247,000 Cost driver 2,400 labor hrs. 32 setups Percentage of use 13, eea units Production of 770 sets of cutting shears one of the company's 20 products, took 180 labor hours and 9 setups and consumed 19 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 price would the product sell under each allocation system? Print 010 References Complete this question by entering your answers in the tabs below. Req A and B Regc Had the company used labor hours as a company wide 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? (Round intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar amount.) Allocated cost b. Allocated cost
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