- 11 ed Out of 3.0 question Candra Corporation currently assigns overhead costs to products solely based on the number of units produced, and are looking at changing to an activity based costing system with a two-step allocation of overhead costs. In the first stage, two overhead costs - Equipment depreciation and Building depreciation would be allocated to three activity cost pools - Curing, Grinding, and Other - based on resource consumption. Data to perform these allocations appear below: Overhead Costs Equipment depreciation: $700,000 Building depreciation: $650,000 Distribution of Resource Consumption across Activity Cost Pools: Overhead Cost Activity Cost Pools Curing Grinding Other Equipment depreciation 0.15 0.20 0.65 Building depreciation 0.30 0.25 0.45 The second stage of allocation would be done by assigning the Curing costs to products on the basis of direct labor hours while products would be assigned Grinding costs based on machine hours. Costs assigned to the Other activity pool would not be further assigned to products. Activity information for Candra's only two products is below: direct labor hours machine hours Units Produced Product VM-034 7,500 9,000 Product LS-152: 12,000 14,000 6,300 Total: 19.500 23.000 8,800 2.500 PART A: PART A: How much overhead cost would be assigned to the Curing activity cost pool under activity based costing in the first stage of allocation? PART B: The activity rate for the Curing activity cost pool under activity based costing would be closest to: PART C: To the nearest dollar, how would the overhead cost assigned to Product LS-152 change under activity based costing compared to their current accounting methods? There would be in assigned overhead under activity based costing, and the amount of the change would be s (Enter for amount if choosing no change for the direction.)