Use the Following Information to Answer the Following Questions

question 7

Multiple Choice

Use the following information to answer the following Questions
St. Vincent’s, Inc., 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.


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

• A) $240,000.
• B) $356,000.
• C) $444,000.
• D) $560,000.
• E) None of the answers is correct.

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Definitions:

Decrease Fluid

A directive or medical necessity to reduce the volume of body fluids, often in the context of managing edema or other conditions.

Catheterizing

The process of inserting a catheter into a body cavity or organ to withdraw or introduce fluids.

Final Stages

The last phases of a condition, process, or disease, often indicating a critical or terminal period.

Elevate Head

The practice of raising the upper body and head with pillows or a bed adjustment for therapeutic reasons.