1. St. James, Inc., currently uses traditional costing procedures, applying

$800,000 of overhead to products Beta and Zeta on the basis of direct labor

hours. The company is considering a shift to activity-based costing and the

creation of individual cost pools that will use direct labor hours (DLH),

production setups (SU), and number of parts components (PC) as cost

drivers. Data on the cost pools and respective driver volumes follow.

Product	Pool No. 1(Driver: DLH)	Pool No. 2 (Driver: SU)	Pool No. 3 (Driver: PC)
Beta	1,200	45	2,250
Zeta	2,800	55	750
Pool Cost	$160,000	$280,000	$360,000

The overhead cost allocated to Beta by using traditional costing procedures

would be:

The overhead cost allocated to Beta by using activity-based costing

procedures would be:

Total amount of direct material for Beta is $200,000 and Zeta is $300,000.

The amount of direct labor is $50 per direct labor hour for both product

lines. What is total manufacturing cost for both using abc and traditional

costing in total and per unit?