12) St. James, Inc., currently uses traditional costing procedures to allocate manufacturing overhead to its two products, Beta and Zeta, on the basis of direct labor hours. For 2018, St. James has budgeted $820,000 of manufacturing overhead for 4,000 direct labor hours. St. James, Inc. is considering a shift to activity-based costing (ABC) with the creation of individual cost pools that will use direct labor hours (DLH), production set-ups (SU) and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes are: Pool # 2 (Driver: SU 45 set-ups 55 set-ups Pool #1 Pool #3 (Driver: PC) 2,250 PC Product (Driver: DLH) Beta 1,200 DLH Zeta 750 PC 2,800 DLH Pool Cost $360,000 $160,000 $300,000 a) using traditional costing procedures, what is the predetermined overhead rate? b) the overhead cost allocated to Beta by using Activity Based Costing procedures would be: $240,000. b. $356,000. c. $444,000. d. $456,000. . cost driver for the delivery activity? 13) (ABC Costing) Which would be an appropriate Shipments. b. Purchase orders. a. c. Customers. d. Inspections. 14) (ABC Costing) Which would be an a. Machine setups. b. Purchase orders. c. Machine hours d. Inspections. appropriate cost driver for the ordering activity? 15) Who is responsible for internal controls within an organization? a. The internal auditor b. The external auditor Management c. d. The PCAOB