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

question 75

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:
-The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

• A)$10.00 per batch
• B)$5.00 per batch
• C)$38.00 per batch
• D)$14.70 per batch

---

Definitions:

Poisoning

The harmful effect that occurs when a toxic substance is ingested, inhaled, or comes into contact with the skin or eyes.

Bipolar Disorder

A psychological state identified by significant shifts in emotion, involving periods of high energy and elation (mania or hypomania) and phases of deep sadness (depression).

Psychosocial Approach

An intervention strategy considering both psychological and social factors in understanding and treating mental health issues.

Reward Sensitivity

The degree to which an individual is motivated by the anticipation or receipt of rewards.