Ormond Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products

question 9

Multiple Choice

Ormond Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $6,800; Order Filling, $10,700; and Other, $4,500. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
-What is the overhead cost assigned to Product B6 under activity-based costing?

• A)$442
• B)$4,722
• C)$11,000
• D)$4,280

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