Ollivier Corporation Has an Activity-Based Costing System with Three Activity

question 7

Multiple Choice

Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
-How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?

• A)$13,200
• B)$14,700
• C)$8,100
• D)$1,500

---

Definitions:

Cerebrospinal Fluid

A clear, protective fluid that circulates around the brain and spinal cord, providing cushioning and maintaining chemical stability.

Diencephalon

is a division of the forebrain, located between the cerebral hemispheres and above the brainstem, including the thalamus and hypothalamus.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, responsible for basic life functions such as breathing and heartbeat.

Choroid Plexus

A network of blood vessels in each ventricle of the brain, responsible for the production of cerebrospinal fluid (CSF).