Gibson Company produces commercial gsidening equipment. Since product.pdf

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Gibson Company produces commercial gsidening equipment. Since production is highly automated, the company allocites its overhead costs to product lines using octhiby bosed costing. The costs and cost divers asseciated with the four overhesd activity cost pools follow: Production of 870 sets of cutting shears, one of the company's 20 products, took. 240 laber hours and 7 setups and centumed 13 percent of the product-sustaking activities. Requilred a. Had the company used lobot hours as a compacywide alocation base, how truch everhedad would it harve albcited fo me cutting shesis? b. How much overhead is allocated to the cutine shears using activitybased cesting? c. Compule the overhesd cost per unt tor cutting shears first using activily bases costing and then uaing drect kber hours for albcavon if 870 units are produced, if diect peoduct cosis are sno and the preduct is priced at 30 percent abowe cont for wher price would the product seit under each aliocation system? Complete this questien by entering your aswers in the tabs below. mecimal placeit).

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