Exhibit 3-2
Dublin Pie Company Sells Cherry Pies and Apple

question 49

Multiple Choice

Exhibit 3-2
Dublin Pie Company sells cherry pies and apple pies in bulk online.Estimated overhead costs for 2016 total $600,000.The accountant for Dublin identified the following information for its activity-based costing system.
$\begin{array}{llc}\text { Activity } & \text { Allocation Base } & \text { Proportion of Total Overhead Cost } \\\hline \text { Purchasing } & \text { Number of purchase orders } & 25 \% \\\text { Processing } & \text { Number of units } & 60 \% \\\text { Sales } & \text { Number of sales orders } & 15 \%\end{array}$
The estimated activity level for each type of pie and in total is as follows:
$\begin{array}{lrrr}&\text { Cherry Pies } & \text { Apple Pies } & \text { Total }\\\text { Number of purchase orders } & 10,000 & 15,000 & 25,000 \\\text { Number of units } & 30,000 & 70,000 & 100,000 \\\text { Number of sales orders } & 1,000 & 4,000 & 5,000\end{array}$

-Refer to Exhibit 3-2.What is the total overhead allocated to the purchasing activity associated with Apple Pies?

• A)$90,000
• B)$24,000
• C)$58,500
• D)$32,000
• E)None of the answer choices is correct.

---

Definitions:

Answer

The response of the defendant to the plaintiff’s complaint.

Admission of Fact

The acknowledgment and acceptance of a fact as true, often in the context of legal proceedings.

U.S. District Courts

Federal courts that serve as the trial-level courts in the United States federal court system, handling both civil and criminal cases.

Trial Courts

The courts where cases are first heard, involving the presentation of evidence and legal arguments to a judge or jury.