ECO Plc Ltd. uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Electricity expense and Water expense - are allocated to three activity cost pools - Grinding, Painting, and Other - based on resource consumption. Data to perform these allocations appear below: Overhead Costs: Electricity expense: $195,000 Water expense: $185,000 Distribution of Resource Consumption across Activity Cost Pools: Overhead Cost Activity Cost Pools Grinding Painting Other Electricity expense 0.40 0.34 0.26 Water expense 0.42 0.32 0.26

The second stage of allocation is done by assigning the Grinding costs to products on the basis of machine hours while products are assigned Painting costs based on direct labor hours. Costs assigned to the Other activity pool are not further assigned to products. Activity information for ECO's only two products is below: machine hours direct labor hours Product XR-4: 3,200 1,500 Product VM-022: 1,900 2,600 Total: 5,100 4,100

PART A: How much overhead cost is assigned to the Painting activity cost pool under activity based costing in the first stage of allocation?Answer

PART B: The activity rate for the Painting activity cost pool under activity based costing is closest to:Answer

PART C: What is the overhead cost assigned to Product VM-022 under activity based costing?