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. Product Pool No.1 (Driver: DLH) Pool No. 2 (Driver: SU) Pool No. 3 (Driver: PC) Zeta 1,200 55 2,250 Beta 2,800 45 750 Pool Cost $160,000 $280,000 $360,000 The overhead cost allocated to Beta by using activity-based costing procedures would be: O a. None of the given answers. O b. $472,000. O c. $356,000. O d. $328.000. O e. $444,000.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 13E: Handbrain Inc. is considering a change to activity-based product costing. The company produces two...
icon
Related questions
icon
Concept explainers
Topic Video
Question
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.
Product
Pool No.1 (Driver:
DLH)
Pool No. 2 (Driver:
SU)
Pool No. 3 (Driver:
PC)
Zeta
1.200
55
2,250
Beta
2,800
45
750
Pool Cost
$160,000
$280,000
$360,000
The overhead cost allocated to Beta by using activity-based costing procedures would be:
O a.
None of the given answers.
O b. $472,000.
Fi
O c.
$356.000.
O d. $328.000.
e.
$444,000.
Transcribed Image Text: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. Product Pool No.1 (Driver: DLH) Pool No. 2 (Driver: SU) Pool No. 3 (Driver: PC) Zeta 1.200 55 2,250 Beta 2,800 45 750 Pool Cost $160,000 $280,000 $360,000 The overhead cost allocated to Beta by using activity-based costing procedures would be: O a. None of the given answers. O b. $472,000. Fi O c. $356.000. O d. $328.000. e. $444,000.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning