Rubi, Ltd. uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Property tax expense and Water expense - are allocated to three activity cost pools - Curing, Order Filling, and Other - based on resource consumption. Data to perform these allocations appear below:

Overhead Costs:

• Property tax expense: $110,000
• Water expense: $175,000

Allocations of Overhead Costs among Activity Cost Pools:Overhead CostActivity Cost PoolsCuringOrder FillingOtherProperty tax expense0.360.300.34Water expense0.320.340.34In the second stage, Curing costs are assigned to products using direct labor hours and Order Filling costs are assigned to products using the number of orders filled. The costs in the Other activity pool are not assigned to products. Activity data for the company's two products is as follows:direct labor hoursorders filledProduct BA-13:3,5003,000Product LS-127:2,4004,000Total:5,9007,000

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?Answer

$92,500

$89,000

$100,400

$56,000

$95,600

PART B:

The activity rate for the Order Filling activity cost pool under activity based costing is closest to:Answer

$13.21

$9.00

$15.08

$17.02

$13.53

PART C:

What is the overhead cost assigned to Product BA-13 under activity based costing?Answer

$96,355

$46,250

$52,857

$56,000

$94,700