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

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.How much total overhead should be assigned to Sales Order 115 for Cherry Pies,if it requires 2 purchase orders for a total of 300 pies (or units) ?

A) $12
B) $1,080
C) $18
D) $1,110
E) None of the answer choices is correct.