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Kandis CVBA 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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Kandis CVBA 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 - Weaving. Order Filling, and Other - based on resource consumption. Data to perform these allocations appear below: Overhead Costs: Electricity expense: $60,000 Security expense: $55,000 Allocations of Overhead Costs among Activity Cost Pools: Overhead Cost Activity Cost Pools Weaving Order Filling Other Electricity expense 0.30 0.38 0.32 Security expense 0.26 0.42 0.32 The second stage of allocation is done by assigning the Weaving costs to products on the basis of direct labor hours while products are assigned Order Filling costs based on orders filled. Costs assigned to the other activity pool are not further assigned to products. Activity information for Kandis's only two products is below: direct labor hours orders filled Product VM-004 3,400 5,000 Product LS-122: 1,600 4,600 Total: 5,000 9,600 PART A: How much overhead cost is assigned to the Order Filling activity cost pool under activity based costing in the first stage of allocation? PART B: The activity rate for the Order Filling activity cost pool under activity based costing is closest to: PART C: What is the overhead cost assigned to Product LS-122 under activity based costing

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