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St James, Inc The Overhead Cost Allocated to Zeta by Using Traditional Costing

question 16

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St. James, 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. $\begin{array}{cccc}& \text { Pool No. 1 } & \text { Pool No. 2 } & \text { Pool No. 3 } \\\text { Product } & \text { (Driver: DLH) } & \text { (Driver: SU) } & \text { (Driver: PC) }\\\hline\text { Beta } & 1,200 & 45 & 2,250 \\\text { Zeta } & 2,800 & 55 & 750 \\& & & \\\text { Pool Cost } & \$ 160,000 & \$ 280,000 & \$ 360,000\end{array}$ The overhead cost allocated to Zeta by using traditional costing procedures would be:

Definitions:

Visual Association Area

A region of the brain that processes complex visual information, integrating features such as color, motion, and shape to form a coherent visual perception.

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A brain structure that relays sensory and motor signals to the cerebral cortex, and regulates consciousness, sleep, and alertness.

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Axon Hillock

The cone-shaped area of the neuron cell body from which the axon originates, crucial for the initiation of nerve signals.