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

question 22

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:
-What is the overhead cost assigned to Product L7 under activity-based costing?

• A)$1,672
• B)$9,022
• C)$7,350
• D)$19,000

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Definitions:

British Arrival

Refers to the period or event when the British first established their presence in a region, often relating to colonial or exploratory contexts.

17th Century

The period extending from the year 1601 to 1700 in the Gregorian calendar, marking a phase in world history rich in changes in art, science, and power dynamics.

16th Century

The century spanning from the year 1501 to 1600, marked by significant events such as the Reformation and the beginning of the European exploration and colonization of the Americas.

Dual Nature

The concept of having two distinct aspects, often referring to objects, beings, or phenomena that exhibit contrasting properties or characteristics.