Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

St. Vincents, Inc., currently uses traditional costing procedures, applying $845,000 of overhead to products Beta and Zeta on the basis of direct labor hours. The

St. Vincents, Inc., currently uses traditional costing procedures, applying $845,000 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 1,650 45 3,375
Zeta 3,850 55 1,125
Pool Cost $ 175,000 $ 295,000 $ 375,000

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

Multiple Choice

  • $253,500.

  • $378,500.

  • $466,500.

  • $591,500.

  • None of the answers is correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions