Use the Following Information to Answer the Following Questions

question 39

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 activity-based 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:

Treasury Stock

Shares that were issued and later reacquired by the issuing company.

Par Common Stock

The nominal or face value of common stock as stated in the corporate charter, which is the minimum amount that must be paid by investors for each share.

Preferred Stock

A type of stock that provides dividends before common stockholders and has priority over common stock in the event of liquidation.

Par Value

A nominal value assigned to a share of stock in the charter of the corporation, often used to determine legal capital.