Business, 03.04.2020 01:21 stryker71

Vernon Inc., currently uses traditional costing procedures, applying $866,800 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)
Beta 2,100 50 2,750
Zeta 3,000 60 760
Pool Cost $255,000 $286,000 $421,200

The overhead cost allocated to Beta by using traditional costing procedures would be closest to:

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