Question
Dublin Pie Company sells cherry pies and apple pies in bulk online. Estimated overhead costs for the year total $558,104. The accountant for Dublin identified
Dublin Pie Company sells cherry pies and apple pies in bulk online. Estimated overhead costs for the year total $558,104. The accountant for Dublin identified the following information for its activity-based costing system. What is the total overhead allocated to the purchasing activity associated with Apple Pies? Answer to nearest whole dollar without any commas or decimal points eg. 1000 not 1,000.00 Enter a negative number as -10 not (10).
Activity | Allocation Base | Proportion of Total Overhead Cost |
Purchasing | Number of purchase orders | 16% |
Processing | Number of units | 52% |
Sales | Number of sales orders | remaining % |
The estimated activity level for each type of pie and in total is as follows:
Cherry Pies | Apple Pies | ||
Number of purchase orders | 8,421 | 15,171 | |
Number of units processed | 28,672 | 72,423 | |
Number of sales orders | 1,017 | 3,739 |
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