Refere n ces Exercise 5-8A (Static) Allocating costs with different cost drivers L0 54, 5-2, 5-3 Vaulker 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 $ 180, 000 $40, 000 $20, 000 $240,000 Cost driver 1,500 labor hrs. 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 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 rst using activitybased 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? Complete thls question by entering your answers In the tabs below. Req A and B Req C ' 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? a Allocated cost $ 64,000 u Allocated cost $ 49,000 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? (Round intermediate calculations and nal answers to 2 decimal places.) Show lessA as - Allocated overhead