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

---

Definitions:

Personal Style

The distinctive expression of an individual's tastes, manners, and preferences in behavior, appearance, or presentation.

Board Of Directors

A group of individuals elected to represent shareholders and govern the activities and policies of an organization.

Short-report Form

A concise, focused report structure that typically addresses a specific audience and purpose.

Executive Summary

A brief overview of a document's key points, designed for quick reading and understanding by executives.