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Chamblee Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Electricity expense and

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Chamblee Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Electricity expense and Security expense - are allocated to three activity cost pools - Machining, Curing, and Other - based on resource consumption. Data to perform these allocations appear below: Overhead Costs: Electricity expense: $35,000 Security expense: $65,000 Allocations of Overhead Costs among Activity Cost Pools: Overhead Cost Activity Cost Pools Machining Curing Other Electricity expense 0.34 0.32 0.34 Security expense 0.48 0.40 0.12 The second stage of allocation is done by assigning the Machining costs to products on the basis of machine hours while products are assigned Curing costs based on direct labor hours. Costs assigned to the other activity pool are not further assigned to products. Activity information for Chamblee's only two products is below: machine hours direct labor hours Product VM-019: 2,700 2,600 Product VM-007: 5,400 6,800 Total: 8,100 9,400 PART A: How much overhead cost is 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 is closest to: PART C: What is the overhead cost assigned to Product VM-019 under activity based costing

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