Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

St. Vincents, Inc., currently uses traditional costing procedures, applying $995,300 of overhead to products Beta and Zeta on the basis of direct labor hours. The

St. Vincents, Inc., currently uses traditional costing procedures, applying $995,300 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 1,800 45 2,450
Zeta 3,250 60 760
Pool Cost $ 252,500 $ 325,500 $ 417,300

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

Multiple Choice

  • $354,760.

  • $470,760.

  • $558,760.

  • $640,540.

  • 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

Case Studies In Strategic ManagementHow Executive Input Enables Students Development

Authors: Gunther Friedl, Andreas Biagosch

1st Edition

3319955543, 9783319955544

More Books

Students also viewed these Accounting questions

Question

What is the effect of word war second?

Answered: 1 week ago