St. Vincent's, Inc., currently uses traditional costing procedures, applying $162.400 of overhead to products Beta...
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Accounting
St. Vincent's, Inc., currently uses traditional costing procedures, applying $162.400 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 Pool No. 2 (Driver: Pool No. 3 (Driver: Pool No.1 (Driver: DLR) 1,700 3,500 SU) Product Beta Zeta PC) 2,750 810 65 Pool Cost $364,000 $300,000 $498,400 The overhead cost allocated to Beta by using traditional costing procedures would be: Multiple Choice O $380,015 $496,015 584 015

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