19-22 Sanibel Inc. currently uses traditional costing procedures, applying $800,00 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 the number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow.

Product Driver: DHL Driver: SU Driver: PC

Beta 1,200 45 2,250

Zeta 2,800 55 750

Pool Cost $160,000 $280,000 $360,000

19. The overhead cost allocated to Beta by using activity-based costing procedures would be:

A. $240,000

B. $356,000

C. $444,000

D. $560,000

20. The overhead cost allocated to Beta by using traditional costing procedures would be:

A. $240,000

B. $356,000

C. $444,000

D. $560,000

E. some other amount

21. The overhead cost allocated to Zeta by using activity-based costing procedures would be:

A. $240,000

B. $356,000

C. $444,000

D. $560,000

22. The overhead cost allocated to Zeta by using traditional costing procedures would be:

A. $240,000

B. $356,000

C. $444,000

D. $560,000