Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: David Ricchiute

7th Edition

0324117760, 978-0324117769

More Books

Students also viewed these Accounting questions