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kolbaska11 [484]
2 years ago
14

St. Vincent's, Inc., currently uses traditional costing procedures, applying $800,000 of overhead to products Beta and Zeta on t

he 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 1,200 45 2,250 Zeta 2,800 55 750 Pool Cost $ 160,000 $ 280,000 $ 360,000 The overhead cost allocated to Zeta by using activity-based costing procedures would be: Multiple Choice None of the answers is correct. $560,000. $240,000. $356,000. $444,000.
Business
1 answer:
tatyana61 [14]2 years ago
6 0

The overhead cost that should be allocated to Zeta via activity-based costing is $356,000.

The following formula for determining the overhead cost allocated to Zeta:

= Zeta pool no 1 ÷ total pool no 1 × pool cost + zeta pool no 2 ÷ total pool no 2 × pool cost + zeta pool no 3 ÷ total pool no 3 × pool cost

= 2,800 ÷ 4,000 × $160,000 + 55 ÷ 100 × $280,000 + 750 ÷ 3,000 x $360,000

= $356,000

Therefore we can conclude that the overhead cost that should be allocated to Zeta via activity-based costing is $356,000.

Learn more about the overhead here: brainly.com/question/11950737

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Explanation:

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7 0
2 years ago
Select all the correct answers.
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I believe the answer is:   goodwill with trade partners

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Answer:

e) capacity requirement planning

Explanation:

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7 0
2 years ago
Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the
Marina86 [1]

Answer and Explanation:

The Preparation of the company's revenue and spending variances for December is prepared below:-

The report with respect to the company revenue and spending variance is presented in the attachment below

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8 0
3 years ago
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Answer:

A. an outflow or decrease of $1,000.

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$11,000 = $4,000 + $10,000 + cash flow from investing activities - $2,000

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3 years ago
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