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Perez 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 $ 8?,996 $ 26,966 $ 18,666 $ 356,666 Cost driver 3,966 labor hours 33 setups Percentage of use 26,639 units Production of790 sets of cutting shears, one ofthe company's 20 products, took 300 labor hours and 8 setups and consumed 15 percent ofthe productsustaining activities. Required 6. l-ad the company used labor hours as a companwide allocation base, how much overhead would it have allocated to the cutting swears? h. l-ow much overhead is allocated to the cutting shears using activitybased costing? 1:. Compute the overhead cost per unit for cutting shears rst using activitybased costing and then using direct labor hours for a location if 790 units are produced. If direct product costs are $190 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 E. Reg [3 Had the company,r used labor hours as a companvwide allocation base, howr much overhead would it have allocated to the cutting shears? How much overhead is allocated to the cutting shears using activitybased costing? Note: Round intermediate calculations to 2 decimal places. Round your nal answers to the nearest whole dollar amount. a. Allocated cost b. Allocated cost ReqC >

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