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St. Vincent's, Inc., currently uses traditional costing procedures, applying $1019,800 of overhead to products Beta and Zeta on the basis of direct labor hours. The
St. Vincent's, Inc., currently uses traditional costing procedures, applying $1019,800 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 Beta Zeta Pool Cost Pool No. 1 Pool No. 2 (Driver DLH) (Driver: SU) 1,900 50 3,600 55 $275,000 $367,500 Pool No. 3 (Driver: PC) 2,650 780 $377,300 The overhead cost allocated to Beto by using traditional costing procedures would be
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