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All three questions are based on the following information: St. Mary, Inc. currently uses traditional costing procedures, applying $520,000 of overhead-to- products Beta and Zeta
All three questions are based on the following information: St. Mary, Inc. currently uses traditional costing procedures, applying $520,000 of overhead-to- products Beta and Zeta on the basis of directlabor hours. The company is considering a shift to-activity-based costing-(ABC) and the creation of individual.cost-pools-that-will-use-direct: labor hours (DLH) and number of parts components (PC) as-cost-drivers. Data on the cost pools and respective driver volumes follow. Producto Betan Zeta Pool No.1 (Driver: DLH Pool No. 2 (Driver:-PC) 1.2000 2,2500 2.800 7500 a $160,0000 $360,0000 Pool Costa 1. Find POHR when St. Mary continues to use traditional costing system. Please assume that all direct labors are used for Beta and Zeta production. Your answer 2. The overhead cost allocated to Beta by using traditional costing procedures would be Your answer 3. The overhead cost allocated to Beta by using ABC would be Your
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