XYZ Co. currently uses traditional costing procedures, applying $800,000 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 Pool No. 3 (Driver: PC) Pool No. 2 (Driver: SU) Pool No.1(Driver: Product DLH) 2,250 55 1,200 Zeta 750 45 2,800 Beta $360,000 $280,000 $160,000 Pool Cost :The overhead cost allocated to Beta by using activity-based costing procedures would be $356,000 a O $472,000 b O $328,000 c O $444,000 d O e O None of the given answers

XYZ Co. currently uses traditional costing procedures, applying $800,000 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 Pool No. 3 (Driver: PC) Pool No. 2 (Driver: SU) Pool No.1(Driver: Product DLH) 2,250 55 1,200 Zeta 750 45 2,800 Beta $360,000 $280,000 $160,000 Pool Cost :The overhead cost allocated to Beta by using activity-based costing procedures would be $356,000 a O $472,000 b O $328,000 c O $444,000 d O e O None of the given answers

Name: XYZ Co. currently uses traditional costing procedures, applying $800,
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Description: XYZ Co. currently uses traditional costing procedures, applying $800,000 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ Co. currently uses traditional costing procedures, applying $800,000 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. Pool No. 2 (Drlver: SU) Pool No. 3 (Driver: PC) Pool No.1 (Drlver: DLH) Product 55 2,250 Zeta 1,200 45 750 Beta 2,800 $160,000 $280,000 $360,000 Pool Cost The overhead cost allocated to Zeta by using activity-based costing procedures would be: O a. $444,000. O b. $328,0000. O c. $472,00. O d. None of the given answers. Window O e. $356,000.
Multiple Choice $9,907.97 $89,171.73 $5,173.02 $136.51
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